Year End Tax Updates

Starting after December 31, 2012, an additional Medicare tax of 0.9 % will apply to income earned above the following thresholds:  

Married Filing Jointly:  $250,000
Married Filing Separately:  $125,000
Single, Head of Household, & Qualifying Widow(er):  $200,000 

All wages that are currently subject to Medicare Tax will be subject to Additional Medicare Tax if in excess of the above thresholds.  

Also, starting on January 1, 2013, if your modified adjusted gross income is over the following thresholds any Net Investment Income you have will be subject to a 3.8% tax.   

Married Filing Jointly:  $250,000
Married Filing Separately:  $125,000
Single or Head of Household:  $200,000
Qualifying Widow(er):  $250,000  

The NIIT will only affect income tax returns of individuals, estates, and trusts for the first tax year beginning on or after January 1, 2013. It will not affect 2012 income tax returns filed in 2013.

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