How Your Taxes Will Change in 2013 – Wall Street Journal – 01/02/13
The bill approved in Congress to avert the fiscal cliff would bring the first major tax increase on high earners in 20 years. Laura Saunders breaks down how new tax increases will impact across different tax brackets.
Payroll Taxes Increase to 6.2% from 4.2% (almost a 50% increase)
Taxpayers Making $200,000 (Single), $250,000 (Couples) Would See Payroll (Medicare) Taxes Increase an Additional 0.9% on Top of the 6.2%
Taxpayers Making $400,000 (Single), $450,000 (Couples) Would See Top Marginal Income Tax Rates Increase to 39.6% from 35%
Taxpayers Making $400,000 (Single), $450,000 (Couples) Would See Long Term Capital Gains Rate Increase to 20% from 15%
Taxpayers Making $200,000 (Single), $250,000 (Couples) Would See an Investment Surtax of 3.8% on Interest, Dividends, Capital Gains and the Like on Sources Above the Limits
Estate Tax Exemption Amount Remains at $5.125 Million (adjusted from inflation), But Rate Increases to 40% from 35%
Taxpayers Making $250,000 (Single), $300,000 (Couples) will Face Exemptions and Deductions Phaseouts
