2013 Tax Rates have moved based upon the 2012 Tax Law. Individuals earning over $400,000 will pay at a rate of 39.6%. They will pay a higher Capital Gains and Dividend Tax of 20%. The payroll Medicaid Tax on Income and Dividends (Obama Care Tax) is 3.8% on individuals with a net investment income of over $200,000 or income over $400,000.
Those individuals earning between $183,000 to $250,000 will pay a new Payroll/Medicare Tax on incoming dividends (Obama Care Tax) of 3.8% (or if they have net investment income of $200,000). The marginal income tax rate of 33% is on those earning between $183,350 and $400,000.
There is also a phase out of personal exemptions and itemized deductions for individuals earning $250,000 or more.
Individuals with income of $87,850 to $183,250, have an income tax rate of 28%. Employee contributions to Payroll Tax increase from 4.2% to 6.2% on earnings up to $110,000. Social Security Taxes for all increased.
At the Law Firm of Steven Andrew Jackson, Attorney and Counsellor at Law, we have helped hundreds of families protect themselves and their loved ones, avoid Estate Taxes and Probate Costs, and keep their Estate Plans current with the law through The Customized Protective Estate Planning Solution™.