Tax Day Has Passed – Now What?

With the 2012 tax filing season behind us, it’s time to start thinking seriously about 2013 tax planning — especially if you’re a higher-income taxpayer, because you might be subject to one or more significant tax increases this year:

• Taxpayers with FICA wages and self-employment income exceeding $200,000 for singles and $250,000 for joint filers face an additional 0.9 percent Medicare tax on the excess.
• Taxpayers with modified adjusted gross income exceeding $200,000 for singles and $250,000 for joint filers may face a new 3.8 percent Medicare tax on some or all of their net investment income.

Taxpayers with taxable income in excess of $400,000 for singles and $450,000 for joint filers face the return of the 39.6 percent marginal income tax rate — and of the 20 percent long-term capital gains rate on long-term capital gains and qualified dividends.

To explore whether you’re likely to be hit with these tax hikes and what strategies you can implement to minimize the impact, contact Doeren Mayhew’s Tax Group, with CPAs in Michigan, Houston and Ft. Lauderdale.