I recently attended a seminar about the new capital gains tax rules that I found to be very important for many tax payers.
There is a new Medicare surtax on higher tax brackets. Be sure to be aware of your income bracket to understand your tax liability. If you have questions or think your reportable income has changed, call your tax preparer to discuss. It’s better to be prepared about possible additional taxes then to be surprised come filing time.
- Single Taxpayers will trigger the new Medicare Surtax of 3.8%* when they hit $200,000 in income.
- Married taxpayers filing joint will trigger the new Medicare Surtax of 3.8%* when they reach $250,000 in income.
* The 3.8% Medicare surtax only applies to “net investment income” as definded in IRC Section 1411.
Attached is a quick reference chart.
Click on the chart for better viewing.
*Chart Provided by: Asset Preservation Inc.