Wednesday, December 11, 2013

2012 - 2013 Key Tax Facts

2012 - 2013 Key Tax Facts
New taxes for top earners
The year 2013 will have several new wrinkles for individuals with incomes above $200,000 for single or $250,000 for couples; specifically, 
higher Medicare payroll taxes and the new Medicare surtax on net investment income.  People with MAGI greater than $200,000 for single or $250,000 for couples, may be impacted by a new Medicare surtax (3.8%) on net investment income. Taxpayers with earned income above $200,000 for single or $250,000 for couples, will pay a higher Medicare payroll tax (0.9%).
      Year 
      2012 
      2013 
      Top marginal long-term capital gains and qualified dividend rate 
      15% 
      23.8%* 
      Top marginal ordinary income tax rate 
      35% 
      39.6% 
      Top rate on short-term capital gains and non-qualified dividends 
      35% 
      43.4%* 
      Personal exemption phaseout (PEP).
      (MAGI above $250,000 for single or $300,000 for married couple filing jointly)
      None



      Completely eliminates value of personal exemption for single earners with an AGI over $372,501 and couples filing jointly with an AGI greater than $422,501.
      Pease itemized deduction phaseout.





      None 



      All itemized deductions reduced by 3% of MAGI over $300,000 for married couples filing jointly ($250,000 for single filers) 
      to a maximum reduction of 80% in value. 
      *includes 3.8% Medicare surtax





























    Taxable income above $400,000 or $450,000 for couples
    In addition to the higher taxes described in the table below, upper-income 
    Americans may be subject to a new 39.6% marginal rate on taxable income over $400,000 for single or $450,000 for married couples filing jointly. Taxpayers may be subject to tax on capital gains and qualified dividends at a rate as high 20% to 23.8% if the Medicare surtax on net investment income applies. 
      Source:  A taxpayer's guide to 2013
      "The 2013 tax changes you can expect, and what you can do about them."
      FIDELITY VIEWPOINTS – 02/27/2013

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