New Obamacare Taxes

Just in case you weren't aware, here is an eye-opening article about all the new taxes that are associated with Obamacare. Contact me if you need help navigating the new tax law.

http://www.atr.org/obama-obamacare-raise-taxes-things-a7883

Tax Day is 4 Weeks Away!

April 15 is only 4 weeks away. Have you filed your income tax return yet? If not, see some important tax filing tips on the link below.

http://www.bankrate.com/finance/taxes/12-tax-tips-2012-1.aspx

Better yet, contact me and I can help!

How much tax do I really pay??

Have you ever wondered how much of my income I pay in tax? The American Institute of Public Accountants (AICPA) has put together a tax calculator that will estimate the total amount of tax you pay per year. The tax calculator estimates the following taxes and can be found here: http://www.totaltaxinsights.org/Calculator

1. Federal Income Tax
2. State Income Tax
3. Real Estate Tax
4. Social Security/Medicare Tax
5. Self-Employment Tax
6. Alternative Minimum Tax
7. Cell Phone Tax
8. Landline Telephone Tax
9. Federal Gas Tax
10. State Gas Tax
11. Sales/Use Tax
12. Personal Property Tax
13. Automobile Tax
14. Hotel Tax
15. Cigarette Tax
16. Liquor tax
17. Utilities tax (natural gas, electricity, etc)

Have I missed any? I think you may be surprised the amount of tax you really pay during the year. Call me at 801-776-5241 with any questions on how to reduce your federal and state income taxes, alternative minimum tax, and Social Security/Medicare/Self-Employment taxes.

The other taxes are up to you to reduce. Just quit driving and you won't pay the federal gas tax!

Fiscal Cliff Tax Legislation

Late on January 1, 2013, Congress finally got its act together and passed a tax legislation bill, averting the dreaded "Fiscal Cliff." Income taxes for married filing joint taxpayers under $300,000 of income will not see any changes to their tax bill. However, tax rates did rise for those above the threshold. Highlights of the bill are below.

1.      39.6% tax rate for joint filers over $450K of income

2.      Personal exemption and itemized deduction phaseout for joint filers above $300K of income

3.      Capital gain and dividend rate of 20% for joint filers over $450K of income. 15% rate for those if 25-33% tax brackets. PERMANENT 0% rate for those if 10-15% tax brackets.

4.      Permanent AMT exemption increase – AMT exemption is now indexed for inflation and is $78,750 in 2012 for joint filers.

5.      American Opportunity Tax Credit (higher education tuition credit) is extended for 5 years.

6.      The following are extended through 2013:

a.       $250 schoolteacher deduction

b.      Exclusion for discharge of qualified principal residence indebtedness

c.       Mortgage insurance premium deduction

d.      Sales tax deduction

e.       Tuition expense deduction

7.      Leasehold improvements are 15 year property again through 2014

8.      Research credit extended through 2013

9.      Sec. 179 has been increased for 2012 to the 2011 levels of $500,000 (lots of good that did for the encouraging new equipment purchases in 2012 when the bill was passed on 1/1/2013.)

You probably have noticed on your first paycheck of 2013 that your employer was required to withhold an extra 2% Social Security tax from your wage. President Obama reduced each employee's contribution to Social Security in 2011 from 6.2% to 4.2%. The law was extended in 2012, but deemed to be too expensive by Congress and was not extended in 2013.  Yahoo has a good article about the effect of the 2% on taxpayers HERE.

Contact me if you have business and/or personal tax questions.