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Old 02-06-2014, 02:24 PM
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What are the Major Tax Law Changes in 2013 that taxpayers should be most aware of this tax filing season?

There are several major tax law changes that will be introduced in 2013. However, Taxpayers should be aware of the following important 2013 tax law changes as shown below;

1.The imposition of “Additional Medicare Tax.”
Starting in 2013, a 0.9% Additional Medicare Tax applies to Medicare wages, Compensation, and Self-Employment income that are greater than;
a)$125,000 if married filing separately.
b)$250,000 if married filing jointly.
c)$200,000 for any other filing status.

2.The Introduction of “Net Investment Income Tax.”
Starting in 2013, certain taxpayers may be subject to Net Investment Income Tax (NIIT). The NIIT is 3.8% of the smaller of (a) your net investment income or (b) the excess of your modified adjusted gross income over;
a)$125,000 if married filing separately.
b)$250,000 if married filing jointly or qualifying widow(er).
c)$200,000 if any other filing status.

3.An increase in the “Highest Marginal Income Tax Rate.”
The highest effective tax rate is going to be 39.6% in 2013 applicable to;
a)Single taxpayers whose Adjusted Gross Income is Greater than $400,000.
b)Married Filing Separate taxpayers whose Adjusted Gross Income is Greater than $225,000.
c)Head of Household taxpayers whose Adjusted Gross Income is Greater than $425,000.
d)Married Filing Joint taxpayers whose Adjusted Gross Income is Greater than $450,000.

4.The increase in the "Tax rate on net capital gain and qualified dividends for certain taxpayers."
The maximum tax rate of 15% on net capital gain and qualified dividends has increased to 20% for some taxpayers.

5."Higher Threshold" limits for deducting Medical and dental expenses.
Taxpayers may deduct only the part of your medical and dental expenses that is more than 10% of your adjusted gross income (7.5% if either you or your spouse is age 65 or older).

6."An increase in Personal exemption" amounts for certain taxpayers.
Your personal exemption is increased to $3,900. But the amount is reduced if your adjusted gross income is more than;
a) $150,000 if married filing separately.
b) $250,000 if single.
c) $275,000 if head of household.
d) $300,000 if any other filing status.

7. The imposition of "limits on itemized deductions".
Taxpayers may not be able to deduct all of your itemized deductions if your adjusted gross income is more than;
a) $150,000 if married filing separately.
b) $250,000 if single.
c) $275,000 if head of household.
d) $300,000 if any other filing status.

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Old 02-07-2014, 03:06 AM
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Join Date: Feb 2014
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Good Post

Hi,
How are you. I'm new member here. Thanks a lot for your information. I would like to join this interesting conversation.

Thanks



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