2013 Tax rates, schedules, and contribution limits
2013 Tax rates, schedules, and contribution limits from Putnam Investments
Category: Taxes
Do your clients need an IRA checkup?
The deadline for making a contribution to an individual retirement account (IRA) for last year is April 15, 2013. As clients seek ways to reduce taxable income, it is an opportune time to talk about IRAs. Consider offering your clients an IRA checkup to determine what they own and how it supports their retirement savings
Don’t get tripped up by the new tax thresholds
While the new federal tax law brought good news for most taxpayers, there may be confusion for others trying to determine when certain tax provisions apply. The tax reform items are linked to income thresholds with different definitions of “income.” It is important for clients to understand the impact of the legislation on their 2013
Five tax-saving strategies for 2013
With marginal tax rates rising for higher income levels, the reduction of some tax preference items, and a new Medicare investment income surtax, income tax planning should be a priority. Here are five strategies that clients can use to mitigate tax obligations today. 1. Invest in municipal bonds for tax-free income Municipal bonds become more
Three deadlines shaping the budget debate
The current budget debate on Capitol Hill is being shaped by several events in the next few months including raising the debt ceiling, the debate on sequestration, and the expiration of a continuing resolution to fund the government. March 1 A March 1, 2013 deadline is set for action on $1.2 trillion in automatic spending
Three reasons to contact clients about the estate tax
The American Taxpayer Relief Act of 2012 made several estate tax provisions permanent, creating planning opportunities that advisors may review with clients seeking to lessen the tax impact. 1. New exemption amount affects all clients The now-permanent $5 million exemption may have unintended consequences for clients at lower wealth levels who feel they do not
New estate tax exemption offers lasting fix
The American Taxpayer Relief Act of 2012 made permanent changes to the federal estate tax law, including establishing a $5 million exemption, indexed for inflation. The new exemption amount means approximately 4,000 estates could still cross the threshold and be subject to estate tax, according to the Tax Policy Center. This number is fewer than
Clients should act now if they want to avoid taxes on recent RMDs
With the passage of the American Taxpayer Relief Act of 2012, Congress extended for 2013 the option for IRA owners over the age of 70½ to make tax-free distributions from an IRA, if those funds are directed to a qualified charity. However, time is running out to take advantage of a new retroactive provision that
Taxes rise for high earners as Congress remedies fiscal cliff fall
Congress approved a bipartisan agreement to reverse spending cuts and tax hikes slated to take effect this year, a day after the United States technically went over the fiscal cliff. As of January 1, 2013, some $600 billion in federal spending cuts and tax hikes were scheduled to take effect, mandated by the Budget Control
Congress eyes cuts to tax preference items
As Congress debates fixes for the budget deficit and reviews options to grow revenues, provisions in the tax code that have benefited investors are under scrutiny. Tax reform proposals, such as the Bowles-Simpson recommendations, call for a significant scaleback in the use of tax preference items, including many itemized deductions. More recently, plans endorsed by