Tax Developments



TAX DEVELOPMENTS

  • Individuals are subject to an Additional Medicare Tax on Earned Wages plus Self-Employment equal to 0.9% when wages exceed stated threshold amounts.
FILING STATUS AMOUNTS
Married filing Jointly $250,000
Married filing Separate $125,000
Single, Head of Household, Qualifying Widow(er) $200,000
  • Individuals are subject to a Net Investment Income Tax equal to 3.8% of the lesser of Net Investment Income or the excess of Modified Adjusted Gross Income when the same threshold amounts (above) are exceeded.
  • Capital Gain Rates have increased for the highest tax bracket [39.6%] from 15% to 20% starting in 2013 and continuing forward.
  • Medical Expense deductions must meet the new level of 10% of AGI before these expenses can be deducted. This does not apply to any taxpayer who is 65 or older as of the end of the tax year.
  • The simplified method of claiming an Office in the Home is now available.
  • Beginning in 2014, all non-exempt US citizens and all legal residents are required to maintain minimum essential health insurance coverage or pay a penalty tax on the individual tax return. [this requirement as been eliminated starting with the 2018 tax year]
    • The Maximum Penalty for not having the minimum essential amount of Health Insurance is:
      • 2017 - $695
  • Same sex marriages are now recognized by the Federal Government. A couple's marriage is recognized as long as the marriage ceremony has taken place in a state that recognizes such unions. It is NOT required that the couple live in a state that recognizes thier marriage in order to receive Federal Tax benefits.