If clients are stinging from this year’s tax bill, it’s time to consider strategies that may improve the situation for next year. The 2013 tax year is the first that some taxpayers saw the difference in their bills due to higher marginal income tax rates and new taxes resulting from the health-care reform law, including
This year marks a pivotal time for the implementation of federal health-care reform as consumers face some key deadlines, including the requirement to obtain insurance coverage. With the fundamental changes in the nation’s health-care system as well as the steady stream of media coverage, it is likely that clients will have many questions about the
With the introduction of higher tax rates for some taxpayers in 2013 and ongoing tax-reform debate in Washington, it is essential for any comprehensive financial plan to include tax smart planning strategies. Specific income thresholds will trigger the new 3.8% Medicare surtax, income phase-out of itemized deductions, or the highest marginal tax rate. These five
Health-care reform legislation introduced a payroll tax increase and a new Medicare surtax this year. While the rise in payroll tax was automatic for taxpayers with a specific income level, the 3.8% investment surtax does not apply to all forms of income. There are several types of income that are not affected by the tax
New taxes took effect this year as a result of the 2010 health-care reform legislation that may have an impact on tax-planning strategies. As of January, the Medicare payroll tax increased to 2.35% from 1.45%. In addition, a 3.8% surtax on “net investment income” was also introduced to help fund health-care reform. Both taxes affect
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
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