The American Taxpayer Relief Act of 2012, which was signed on January 2, 2013, did not make major changes in the tax rules governing most Americans. But it did create significant tax increases for high-earners. The thresholds identifying “high-earners” differ from one tax provision to the next, leaving many who don’t consider themselves wealthy exposed to these tax increases. The top income tax bracket has been raised from 35% to 39.6%, and for some, the tax rate on long-term capital gains and dividends has increased from 15% to 20%. At certain income thresholds, taxpayers face limits on personal exemptions and itemized deductions, plus exposure to new Medicare surtaxes.
The drive for tax reform to simplify our tax code, broaden the tax base, and lower tax rates is still alive, though political gridlock may prevent any real change any time soon. But keep an eye on what’s being considered, so that the planning strategies you pursue don’t leave you with tax surprises down the road.
Make it a midyear priority to size up your tax situation while you still have enough time to adjust strategies for this year. If you wait, you limit your options and very likely will pay higher taxes than necessary. Use this Letter to start your midyear tax review; then contact our office at (813) 514-8273 for more information on the tax-saving opportunities that are best suited to your individual circumstances.
- Take three steps now to cut your 2013 taxes
- Do some planning if the new Medicare taxes apply to you
- Take another look at HSAs (health savings accounts)
- Estimated Taxes: Who needs to pay them?
Schedule your midyear tax review soon
Making time for 2013 tax planning now not only helps reduce your taxes, but also helps to put you in control of your entire financial situation. Tax planning should be a year-round process, but it’s especially effective at midyear. Give us a call for guidance in implementing the best moves for your particular situation.
NOTE: This announcement is issued annually to provide you with information about minimizing your taxes. Do not apply this general information to your specific situation without additional details. Be aware that the tax laws contain varying effective dates and numerous limitations and exceptions that cannot be summarized easily. For details and guidance in applying the tax rules to your individual circumstances, please contact us.