Individuals' 10%, 25%, 28%, 33%, and 35% tax brackets are made permanent; high-income taxpayers taxed at 39.6% rate after 2012

Articles, Personal/Individual Taxes, Tax Articles

To compute regular tax liability, an individual uses the appropriate tax rate schedule (or IRS-issued income tax tables for taxable income of less than $100,000). The Code provides four (statutory) tax rate schedules based on filing status, i.e., single, married filing jointly/surviving spouse, married filing separately, and head of household. Each schedule is divided into…

Get ready for tax increases in 2013 under Affordable Care Act

Articles, Health Benefits, Health Care Reform Act (ObamaCare), Personal/Individual Taxes

Dear Client, Even if Congress were to somehow solve its tax extender problems and kick all the EGTRAA and JGTRRA sunsets down the road for another year, the fact remains that under the Affordable Care Act (the Patient Protection and Affordable Care Act, P.L. 111-148, and the Health Care and Education Reconciliation Act of 2010,…

Standard mileage rates for business, medical & moving increase 1¢ per mile for 2013

Articles, Business, Health Benefits, Personal/Individual Taxes, Tax Articles

Dear Client, IRS has announced that the optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) will increase by 1¢ to 56.5¢ per mile for business travel after 2012. This rate can also be used by employers to reimburse tax-free under an accountable plan, employees who supply their own autos…

Supreme Court Ruling: What You Need to Know (Affordable Care Act)

Articles, Health Care Reform Act (ObamaCare), Personal/Individual Taxes

Starting in 2014, the Affordable Care Act (ACA) requires health plans to cover everyone, including those with pre-existing conditions, and does not allow premiums to vary based on a person’s health status. Without requiring everyone to purchase and maintain coverage, there is a powerful incentive for people to wait and purchase insurance only after they…