Mid-Year Tax Planning Advice For A Few Miscellaneous Things

July 26, 2013 2:06 PM
Mid-Year Tax Planning Advice For A Few Miscellaneous Things
BOSTON (CBS) – Tax Bracket Changes –

" The highest tax bracket for individuals is now 39.6%. It will affect single taxpayers with a taxable income over $400,000 and taxpayers filing jointly with taxable income over $450,000. Taxpayers in this bracket are also hit with a higher tax rate of 23.8% on dividends and long-term capital gains not the 15% most of us will pay. Ouch!

Check Your Withholding –

High earning taxpayers will owe an additional 0.9% Medicare tax on earned income of more than $200,000 for single filers or $250,000 for married couples who file jointly.

For example, if you’re single and earn $230,000 this year, your employer will be required to withhold 1.45% on the first $200,000 and 2.35% on the next $30,000. A total of $3,605 in Medicare taxes.

Medical Deductions –

Medical deductions may be out of reach for many taxpayers this year. To qualify your unreimbursed medical expenses must exceed 10% of your adjusted gross income, up from the 7.5% it had been. For taxpayers 65 and older, the threshold will at remain at 7.5% through 2016 "

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