While taxes are certain in life, there is no guarantee that the rules that apply to these taxes will remain the same each year. In fact, 2013 saw a number of IRS changes that will affect many taxpayers, especially those in the upper tax brackets.
Here’s what you need to know this tax season, which opens January 31st:
If your income is above $200,000 (or $250,000 as a married couple filing jointly)…
* All or part of your net investment income may be subject to an additional 3.8% Medicare tax.
* If your income is a combination of salary and self-employment income, you will be responsible for an additional 0.9% Medicare tax (on top of the original 2.9%).
If your income is above $250,000 (or $300,000 as a married couple filing jointly or $275,000 for head of household)…
* Some personal and dependent exemptions might be cut down or eliminated.
* … Read More