We are half way through the year, so don’t forget that Uncle Sam is sharping his blade to get a bigger slice of your income come April 15, 2014. As such, we thought we would remind everyone of the main changes:
- New Marginal Rate of 39.6%
- Single tax filers start at taxable income above $400,000
- Joint tax filers start at taxable income above $450,000 (Marriage Penalty Back)
- Long-Term Capital Gains and Dividend Rate at 20% for those in the 39.6% bracket stated above. 15% and 0% for other investors.
- Phaseout of Personal Exemptions and Itemized Deductions
- Single tax filers with AGI above $250,000
- Joint tax filers with AGI above $300,000
- Medicare Payroll Tax Hike of 0.9%
- Single tax filers with earnings above $200,000
- Joint tax filers with earnings above $250,000
- Health Surtax of 3.8% on Net Investment Income
- Single tax filers with AGI above $200,000
- Joint tax filers with AGI above $250,000
If you will be bitten by any of these new taxes in 2013 please confer with your tax professional to ensure that your tax estimates are adequate. Interest and penalties may be applicable for the underpayment of taxes, which is another reason to know your tax liability. In addition, you can start to squirrel away funds to pay your liability if owed… nothing worse than surprises and scrambling for cash.