What are the some of additional tax hikes for 2013 Tax Year?
1. Increase in Medicare Taxes for Single and Married Filing Joint Filers.
Starting in 2013, High Income taxpayers will see an increase in their Medicare Taxes. This is because there is a 0.9% surtax on Single Taxpayers whose Modified Adjusted Gross Income exceeds $200,000, whereas Taxpayers who file jointly, will see a surtax of 0.9% on their Modified Adjusted Gross Income that exceeds $250,000.
2. AGI Floor for deducting Medical expenses increases to 10%.
For taxpayers who are below age 65, will see that in tax year 2013, their ability to deduct medical expenses will be further reduced. This is because the Floor to deduct Medical expenses that was previously 7.5% of Adjusted Gross Income has now been increased to 10% in 2013.