Finance & Enjoyment Blog

 

See below for a guide to all tax changes taking effect in 2013. Please note that some things such as the tax rates may be subject to change depending on Congressional action.

 

  • The top tax brackets rising from 33–35% to 36–39.6%

  • Long-term capital gains taxes rising from 0–15% to 10–20%

  • Dividends taxed at ordinary income tax rates up to 39.6% and the expiration of the quali­fied dividend rate of 15% 

  • The expiration of the FICA payroll-tax cuts from late 2010 will raise the rate from 4.2% to 6.2%. Also, the income cap will increase from $110,100 per year to $112,500.

  • The new Medicare tax of 3.8% for individuals making more than $250,000 (Married Filing Jointly) on net investment income (excluding municipal income)

  • The expiration of the Alternative Minimum Tax ‘patch.’

  • In 2012, the current estate tax exclusion is $5,120,000. As currently scheduled, the exemp­tion will drop to $1,000,000 at midnight on December 31, 2012, greatly increasing the num­ber of people who will be subject to estate tax.

  • The floor for deducting medical expenses will rise from 7.5% to 10% of adjusted gross income unless the taxpayer is sixty-five or older.

  • Dependent care tax credits will decrease from $3,000 to $2,400 in 2013. The childcare credit will decrease from $1,000 to $500 per child.

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Posted in Successful Practice Management » Your Financial House » Rules and Regulations »



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