The 7 Horsemen of the 2013 Tax-Pocalypse
-
Upload
mitch-fox -
Category
Economy & Finance
-
view
1.236 -
download
0
description
Transcript of The 7 Horsemen of the 2013 Tax-Pocalypse
![Page 1: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/1.jpg)
The 7 Horsemen of the 2013
Tax-PocalypseWhy you’ll almost surely pay more taxes in 2013
(and how to prepare)
![Page 2: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/2.jpg)
Payroll TaxThe 2009 Stimulus bill included a 2% reduction in the Social Security tax. It’s back in 2013, and impacts everyone who earns a wage - your paycheck is already smaller as a result.
Photo Credit: www.CourtneyCarmody.com via Flickr
![Page 3: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/3.jpg)
Payroll Tax 2% increase in Social Security
tax on 1st $113,700 of income Maximum of $2,274 in additional
taxes, per spouse Tax is taken directly out of your
paycheck (not reported on 1040)
Photo Credit: www.CourtneyCarmody.com via Flickr
![Page 4: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/4.jpg)
New Highest Tax RateThe Marginal Tax Rate on the highest earners has increased from 35% to 39.6% as a result of the new "Fiscal Cliff" tax rules.
Photo Credit: jypsygen via Flickr
![Page 5: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/5.jpg)
New Highest Tax Rate Applies to single filers earning
over $400,000 and joint filers over $450,000
Increase in Marginal Tax Rate of 4.6% on income over the threshold above
Photo Credit: jypsygen via Flickr
![Page 6: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/6.jpg)
Net Investment Income Surtax This new 3.8% surtax applies to "unearned income" (primarily interest, dividends, and capital gains) on higher earners. It’s part of the Patient Protection and Affordable Care Act (often called “Obamacare”).
![Page 7: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/7.jpg)
Net Investment Income Surtax Income threshold of $200,000
(single) or $250,000 (joint) 3.8% tax on the lesser of:
Your Modified Adjusted Gross Income over the threshold
Your Net Investment Income (e.g. interest, dividends, capital gains)
![Page 8: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/8.jpg)
Capital Gains Rate HikeThe tax rate on both Qualified Dividends and Long-term Capital Gains jumped from 15% to 20% as part of the "Fiscal Cliff" tax bill for the highest earners.
Photo Credit: gepiblu via Flickr
![Page 9: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/9.jpg)
Capital Gains Rate Hike Applies to single filers earning
over $400,000 and joint filers over $450,000
5% in additional taxes on Capital Gains and Qualified Dividends
Photo Credit: gepiblu via Flickr
![Page 10: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/10.jpg)
Medicare SurtaxThe Affordable Care Act (“Obamacare”) levies a new 0.9% increase in Medicare tax on higher earners.
Photo Credit: jypsygen via Flickr
![Page 11: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/11.jpg)
Medicare Surtax 0.9% in new taxes on income
above the set threshold Income threshold of $200,000
(single) or $250,000 (joint)
Photo Credit: jypsygen via Flickr
![Page 12: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/12.jpg)
Exemption Phaseout A less understood bit of the Fiscal Cliff tax bill, sometimes called “PEP,” is the gradual reduction in the value of each personal exemption a taxpayer receives if their income exceeds a threshold
Photo Credit: jeffsmallwood via Flickr
![Page 13: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/13.jpg)
Exemption Phaseout Income threshold of $250,000
(single) or $300,000 (joint) Value of exemptions reduced by
2% for every $2,500 of income over the threshold
Photo Credit: jeffsmallwood via Flickr
![Page 14: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/14.jpg)
Itemized Deduction Phaseout Sometimes called “Pease,” higher earners lose a growing percentage of the value of their itemized deductions as their income increases – it was introduced with the Fiscal Cliff tax rules
Photo Credit: lilife2012 via Flickr
![Page 15: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/15.jpg)
Itemized Deduction Phaseout Income threshold of $250,000
(single) or $300,000 (joint) Itemized deductions reduced by
3% of the amount of your income above the threshold, up to a maximum of 80%
Photo Credit: lilife2012 via Flickr
![Page 16: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/16.jpg)
Find out how you’re impacted, based on YOUR financial situation
![Page 17: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/17.jpg)
Get a Free Tax Checkup
![Page 18: The 7 Horsemen of the 2013 Tax-Pocalypse](https://reader036.fdocuments.in/reader036/viewer/2022070317/5568203ad8b42afe5c8b528c/html5/thumbnails/18.jpg)
at www.goodapril.com
IRS Circular 230 Notice: GoodApril does not act as a tax attorney and does not provide legal advice. GoodApril's website and tools should not be treated as "covered opinions" under IRS Circular 230 and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code.