Did you know the 3.8% surtax affects trusts?
While many are discussing the significant tax impact on individuals resulting from the American Taxpayer Relief Act (ATRA), there are a several important provisions affecting businesses.
There are two components of the 2010 health care reform law that add additional Medicare taxes for high income taxpayers; a .9% increase in the Medicare tax on wages and self-employment income, and a 3.8% Medicare tax on investment income.
The American Tax Relief Act of 2012 extends for two years, through December 31, 2013, the provision allowing tax-free distributions from individual retirement accounts to public charities, by individuals age 70½ or older, up to a maximum of $100,000 per taxpayer per year.
If you employ someone to work in or around your home, age 18 or older, and pay them wages of $1,800 or more in 2012, you may be a household employer.
Dramatic tax increases scheduled to go into effect in 2013 make 2012 tax planning imperative.
It is hard to believe that the tax cuts enacted back in 2001 (Economic Growth And Tax Relief Reconciliation Act of 2001) are set to expire at the end of this year.