Obama win: What it means for your tax bill# WaterWorld - 未名水世界
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http://www.cbsnews.com/8301-505123_162-57546009/obama-win-what-
for-your-tax-bill/
摘录：
Low-middle wage earners: One of the biggest losses for low to middle
wage earners will be the Earned Income Tax Credit, which was a
refundable credit (meaning that even if your credit exceeds your tax
liability, you don't lose the excess and are entitled to receive any
overage as a refund) for married couples filing jointly with 2011 earned
income under $49,078 and singles with income under $43,998.
On top of the EIC, the expiration of the "payroll tax holiday," a 2
percent Social Security tax cut on the first $110,000 in wages, will
mean a tax hike of $1,000 per year. Add in the old tax rates that will
go back into effect after the expiration of the Bush tax cuts, as well
as tax and college credits, and you can see how tax bills for middle and
lower taxpayers can pile up.
Upper middle wage-earners: In addition to the payroll tax increase,
this
group faces higher tax brackets. For every dollar above $70,700, the tax
rate will be 28 percent, up from 25 percent. Over $142,700, the rate
rises to 31 percent from 28 percent. The current capital gains rate of
15 percent will increase to 20 percent, while the 15 percent dividend
tax rate will equal income tax rates.
High wage earners (over $200,000 single, $250,000 married): The two
top
tax brackets are set to rise from 33 and 35 percent to 36 ($217,450-
$388,350) and 39.6 percent (over $388,350) respectively. In addition to
the capital gain and dividend rates, as of 2013, the new health care
reform will levy a new surtax of 3.8 percent on capital gains, pushing
up the top capital gains rate to 23.8 percent for high income earners.
Finally, the estate tax is also set to increase. Right now, each tax
payer is entitled to a tax credit that wipes out the estate tax due on
the first $5,120,000 of an estate. The tax rate above the $5 million
threshold is 35 percent. When the Bush tax cuts expire, the exemption
will drop to $1 million and the tax rate will increase to 55 percent.
What to do before end of the year: Given these potential tax
increases,
if you are sitting with ample gains in a taxable account, it could make
sense to sell the position and lock-in the 15 percent capital gains rate
this year. Even if Congress averts jumping off the fiscal cliff, most
economists believe that capital gains rates will likely rise over the
next five years. Additionally, this could be a great opportunity to re-
balance your portfolio with lower cost assets, like no load index funds.
Additionally, if you haven't reviewed your estate plan in a few years,
it's a good time to dust off the file and make an appointment with your
estate attorney.
for-your-tax-bill/
摘录：
Low-middle wage earners: One of the biggest losses for low to middle
wage earners will be the Earned Income Tax Credit, which was a
refundable credit (meaning that even if your credit exceeds your tax
liability, you don't lose the excess and are entitled to receive any
overage as a refund) for married couples filing jointly with 2011 earned
income under $49,078 and singles with income under $43,998.
On top of the EIC, the expiration of the "payroll tax holiday," a 2
percent Social Security tax cut on the first $110,000 in wages, will
mean a tax hike of $1,000 per year. Add in the old tax rates that will
go back into effect after the expiration of the Bush tax cuts, as well
as tax and college credits, and you can see how tax bills for middle and
lower taxpayers can pile up.
Upper middle wage-earners: In addition to the payroll tax increase,
this
group faces higher tax brackets. For every dollar above $70,700, the tax
rate will be 28 percent, up from 25 percent. Over $142,700, the rate
rises to 31 percent from 28 percent. The current capital gains rate of
15 percent will increase to 20 percent, while the 15 percent dividend
tax rate will equal income tax rates.
High wage earners (over $200,000 single, $250,000 married): The two
top
tax brackets are set to rise from 33 and 35 percent to 36 ($217,450-
$388,350) and 39.6 percent (over $388,350) respectively. In addition to
the capital gain and dividend rates, as of 2013, the new health care
reform will levy a new surtax of 3.8 percent on capital gains, pushing
up the top capital gains rate to 23.8 percent for high income earners.
Finally, the estate tax is also set to increase. Right now, each tax
payer is entitled to a tax credit that wipes out the estate tax due on
the first $5,120,000 of an estate. The tax rate above the $5 million
threshold is 35 percent. When the Bush tax cuts expire, the exemption
will drop to $1 million and the tax rate will increase to 55 percent.
What to do before end of the year: Given these potential tax
increases,
if you are sitting with ample gains in a taxable account, it could make
sense to sell the position and lock-in the 15 percent capital gains rate
this year. Even if Congress averts jumping off the fiscal cliff, most
economists believe that capital gains rates will likely rise over the
next five years. Additionally, this could be a great opportunity to re-
balance your portfolio with lower cost assets, like no load index funds.
Additionally, if you haven't reviewed your estate plan in a few years,
it's a good time to dust off the file and make an appointment with your
estate attorney.