Your 2013 Tax Bill May Give You A Shocker

Article Highlights Regular and capital gains tax rates increase for higher income taxpayers New 3.8% net investment income tax Additional 0.9% health insurance payroll and self-employment tax Phase-out of exemption deduction Phase-out of itemized deductions Many higher-income taxpayers are in for a shock when their 2013 income tax returns are prepared. In 2013, a significant number of tax increases, and new limitations on deductions,...

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You and the New Medicare Tax

Article Highlights: New additional 0.9% Medicare tax for higher-income taxpayers. Threshold for paying the tax is combined wages and net self-employment income of over $250,000 for married individuals and $200,000 for others. Certain combinations of income and marital status could result in unexpected tax liabilities and penalties. There is a new additional Medicare tax in effect for 2013...

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Fine Tuning Capital Gains and Losses

Article Highlights          Long-term capital gains rates are zero to the extent that the taxpayer is in the 10 or 15% regular tax bracket.          Long-term capital rates are 15% to the extent that the taxpayer is in the 25% through the 35% regular tax bracket.          Long-term capital rates are 20% to the extent that the taxpayer is in the 39.6% regular tax bracket.  ...

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Avoid Home Cancellation of Debt Income

Article Highlights • Forgiven debt is taxable. • Forgiven home mortgage acquisition debt is excludable. • Without a last-minute congressional extension, the home mortgage acquisition debt exclusion expires at the end of 2013. When a taxpayer settles a debt for less than its full amount, the forgiven amount of the debt is taxable, unless the taxpayer qualifies for one of two currently available exclusions. With the downturn in the economy...

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Take Advantage of the IRA-to-Charity Transfer

Article Highlights Direct IRA-to-charity transfers are allowed in 2013 for taxpayers age 70½ and over. Maximum transfer allowed is $100,000. Transfer counts towards the required minimum distribution. Beneficial for taxpayers with Social Security income and those who do not itemize their deductions. For 2013, if you are age 70½ and over, you are allowed to make direct distributions (up to $100,000) from your Traditional...

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What's Best…Tax-free or Taxable Interest Income?

Article Highlights Interest earned from states’ and local governments’ general purpose obligations that are generally tax-exempt for federal purposes. Earning tax-exempt interest may not put the most after-tax dollars into your pocket. Tax-exempt interest is not subject to the new 3.8% surtax on net investment income. Tax-exempt interest is still treated as income for the purposes of taxing Social Security benefits or...

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November Due Dates

November 2013 Individual Due Dates November 12 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during October, you are required to report them to your employer on IRS Form 4070 no later than November 12. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax...

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