FOX – WOFL
Click here to calculate how much the Affordable Care Act (AKA ObamaCare) will cost you in taxes.
7 Strategies to Protect Your Financial Security
- Taxes on high income individuals and trusts have increased for 2013.
- Planning needs to begin NOW to prepare for tax increases, especially for taxpayers and Trust owners who will be in the top tax brackets in 2013 with just $12,000 in annual income!
- IRA distributions are exempt from the 3.8% surtax on net investment income, but taxable distributions from these accounts can push income over the threshold amounts causing other investment income to be subject to the tax.
- Roth conversions are more valuable as a means to eliminate future taxable income and eliminate future RMDs from traditional IRAs before higher tax rates become effective.
- Taxpayers who have named a discretionary trust as their IRA beneficiary should consider Roth conversions to avoid potential harsh trust tax rates at low trust income levels.
- Salary deferrals (401(k), 403(b), etc.) can reduce MAGI for the 3.8% surtax but cannot reduce earned income for the 0.9% additional Medicare tax.
- Trusts are hit hard – The 3.8% surtax kicks in at much lower income levels for trust. The threshold for trusts and estates is the amount at which the top trust tax bracket takes effect. This amount in 2013 is $12,000. If you are leaving assets to your family through a TRUST you must attend.
FLA Republican Marco Rubio said the Court’s ruling confirmed that ObamaCare is essentially a “middle-class tax increase,” and will further stall the lagging economic recovery and create tax problems for millions of Americans.
