Recent changes in the tax code may mean you need a new tax planning strategy: The American Taxpayer Relief Act of 2012 makes permanent the lower tax rate of many of the Bush tax cuts, while retaining the higher rate for upper income levels from the expiration of the Bush tax cuts. Individuals with incomes of more than $450,000 (married) and $400,000 (single) thresholds will pay 39.6% income tax rate and a 20% capital gains tax.
Additionally, there are at least two new surtaxes as a result of the Affordable Care Act:
- Investment income surtax: a 3.8% surtax on interest, annuities, dividends, rents, capital gains, royalties, and passive activity income for those with modified adjusted gross income of more than $250,000 (married) or $200,000 (single).
- High-wage earners will owe an additional 0.9% Medicare surtax on earned income above $250,000 (married) and $200,000 (single).
These and other changes in the tax code call for new tax planning strategies. The time to start is now: Call Maddox, Thomson & Associates today. Our experts are ready to help you develop a plan to realize significant tax savings in 2013.
