TAX PLANNING FOR THE NEW MEDICARE TAXES
The health care reform legislation enacted in 2010 significantly broadens the Medicare tax base for higher-income taxpayers by enacting two new taxes. Beginning in 2013, higher- income taxpayers will be subject to an additional 0.9% tax on earned income and a new 3.8% tax on investment income. This...
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Published in | Practical Tax Strategies Vol. 88; no. 4; p. 148 |
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Main Author | |
Format | Trade Publication Article |
Language | English |
Published |
Boston
Thomson Reuters (Tax & Accounting) Inc
01.04.2012
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Subjects | |
Online Access | Get full text |
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Summary: | The health care reform legislation enacted in 2010 significantly broadens the Medicare tax base for higher-income taxpayers by enacting two new taxes. Beginning in 2013, higher- income taxpayers will be subject to an additional 0.9% tax on earned income and a new 3.8% tax on investment income. This article reviews these new taxes and discusses tax planning strategies associated with them. The new 0.9% tax on earned income and 3.8% tax on net investment income will increase the tax burden of higher- income taxpayers beginning in 2013. Taxpayers and their advisors should begin planning now in order to minimize the impact of these taxes in 2013 and beyond. |
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ISSN: | 1523-6250 |