2013 Brings New Taxes to High Income Taxpayers

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The Patient Protection and Affordable Care Act (sometimes called “Obamacare”) comes with two new taxes for higher income taxpayers beginning on January 1, 2013: (i) a 3.8 percent Medicare contribution tax on net investment income (“Net Investment Income Tax”), and (ii) a 0.9 percent additional Medicare tax on wages and self-employment income. This Alert provides a general overview of these taxes and some of their potential impacts.

This new 3.8 percent tax will only affect taxpayers whose adjusted gross income (“AGI”) exceeds $250,000 for joint filers, $200,000 for single taxpayers and heads of household, and $125,000 for a married individuals filing separately. AGI consists of your gross income minus your adjustments to income.

Please see full article below for more information.

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Topics:  3.8% Medicare Tax, Adjusted Gross Income, Affordable Care Act, Medicare Taxes, Net Investment Income, Payroll Taxes

Published In: Administrative Agency Updates, Health Updates, Labor & Employment Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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