There are 7 major tax changes coming in 2013. Almost every American taxpayer will be affected by at least one of these rules. GoodApril provides a quick summary of each of these major tax changes for 2013, including tax criteria, relevant thresholds, and basic details behind each. The seven rules covered include: - The Increase in the Employee Portion of the Social Security tax (FICA) - The New High Income Tax Bracket of 39.6% - The New 3.8% Net Investment Income Medicare Surtax - The Increase in the Capital Gains and Qualified Dividend Tax Rate - The creation of the 0.9% Medicare Surtax - The new Personal Exemption phaseout ("PEP") - The new Itemized Deduction phaseout ("Pease") Get your free Tax Checkup from http://www.goodapril.com

1. Why you’ll almost surely
pay more taxes in 2013
(and how to prepare)

2. Payroll Tax
The 2009 Stimulus bill included a
2% reduction in the Social Security
tax. It’s back in 2013, and impacts
everyone who earns a wage - your
paycheck is already smaller as a
result.
Photo Credit: www.CourtneyCarmody.com via Flickr

3. Payroll Tax
 2% increase in Social Security
tax on 1st $113,700 of income
 Maximum of $2,274 in additional
taxes, per spouse
 Tax is taken directly out of your
paycheck (not reported on 1040)
Photo Credit: www.CourtneyCarmody.com via Flickr

4. New Highest Tax Rate
The Marginal Tax Rate on the
highest earners has increased
from 35% to 39.6% as a result of
the new "Fiscal Cliff" tax rules.
Photo Credit: jypsygen via Flickr

5. New Highest Tax Rate
 Applies to single filers earning
over $400,000 and joint filers
over $450,000
 Increase in Marginal Tax Rate of
4.6% on income over the
threshold above
Photo Credit: jypsygen via Flickr

6. Net Investment Income Surtax
This new 3.8% surtax applies to
"unearned income" (primarily
interest, dividends, and capital
gains) on higher earners. It’s part
of the Patient Protection and
Affordable Care Act (often called
“Obamacare”).

7. Net Investment Income Surtax
 Income threshold of $200,000
(single) or $250,000 (joint)
 3.8% tax on the lesser of:
 Your Modified Adjusted Gross
Income over the threshold
 Your Net Investment Income (e.g.
interest, dividends, capital gains)

8. Capital Gains Rate Hike
The tax rate on both Qualified
Dividends and Long-term Capital
Gains jumped from 15% to 20% as
part of the "Fiscal Cliff" tax bill for
the highest earners.
Photo Credit: gepiblu via Flickr

9. Capital Gains Rate Hike
 Applies to single filers earning
over $400,000 and joint filers
over $450,000
 5% in additional taxes on Capital
Gains and Qualified Dividends
Photo Credit: gepiblu via Flickr

10. Medicare Surtax
The Affordable Care Act
(“Obamacare”) levies a new 0.9%
increase in Medicare tax on higher
earners.
Photo Credit: jypsygen via Flickr

11. Medicare Surtax
 0.9% in new taxes on income
above the set threshold
 Income threshold of $200,000
(single) or $250,000 (joint)
Photo Credit: jypsygen via Flickr

12. Exemption Phaseout
A less understood bit of the Fiscal
Cliff tax bill, sometimes called
“PEP,” is the gradual reduction in
the value of each personal
exemption a taxpayer receives if
their income exceeds a threshold
Photo Credit: jeffsmallwood via Flickr

13. Exemption Phaseout
 Income threshold of $250,000
(single) or $300,000 (joint)
 Value of exemptions reduced by
2% for every $2,500 of income
over the threshold
Photo Credit: jeffsmallwood via Flickr

14. Itemized Deduction Phaseout
Sometimes called “Pease,” higher
earners lose a growing percentage
of the value of their itemized
deductions as their income
increases – it was introduced with
the Fiscal Cliff tax rules
Photo Credit: lilife2012 via Flickr

15. Itemized Deduction Phaseout
 Income threshold of $250,000
(single) or $300,000 (joint)
 Itemized deductions reduced by
3% of the amount of your income
above the threshold, up to a
maximum of 80%
Photo Credit: lilife2012 via Flickr

16. Find out how you’re impacted,
based on YOUR financial situation

17. Get a Free Tax Checkup

18. at www.goodapril.com
IRS Circular 230 Notice: GoodApril does not act as a tax attorney and does not provide legal advice. GoodApril's website and
tools should not be treated as "covered opinions" under IRS Circular 230 and cannot be used for the purpose of avoiding
penalties under the Internal Revenue Code.