J.K. Lasser's Small Business Taxes 2017

APPENDIX D List of Dollar Limits and Amounts Adjusted for Inflation

1. Items Adjusted Annually for Inflation
2. Items Fixed by the Tax Code
3. Items Set by the IRS

Taxes are a moving target because many dollar limits and percentages change annually due to increases in inflation. However, some limits and amounts are fixed in the Tax Code and cannot be changed without an act of Congress. Still others are set by the IRS for administrative convenience and are not adjusted annually but could change at the IRS's whim. To help you plan ahead and to figure estimated taxes for 2017, where necessary, lists of items that may or may not change for the next tax year follow. The adjustments for 2017 are listed in the Supplement to the extent that these were available by February 2017.

Items Adjusted Annually for Inflation

• 401(k) plans—the annual contribution limit through salary reductions as well as the additional contribution limit for those age 50 and older by year end.
• Adoption assistance—excludable employer-provided adoption assistance for employees ($13,460 for 2016).
• Archer medical savings accounts (MSAs)—the dollar limit on contributions for plans established before 2008.
• First-year expensing (Sec. 179 deduction)—the dollar limit on the deduction, as well as the phase-out on property placed in service. For 2016, the limits are $500,000 and $1,010,000, respectively.
• Health savings accounts (HSAs)—the dollar limit on contributions as well as the definition of a high-deductible health plan ...