Tag Archives: Investment Tax

Switching Funds Can Bring a Tax Surprise

Many mutual fund companies allow you to switch funds without a penalty or commission, as long as you stay within their family of funds. There’s a catch though. Unless the funds are in a tax-deferred retirement account, you could owe income tax each time you make a switch. When you move money between funds, the IRS considers it a sale.… (more…)

Social Security Benefits and Your Taxes

  Some people must pay taxes on their Social Security benefits. If you get Social Security, you should receive a Form SSA-1099, Social Security Benefit Statement, by early February. The form shows the amount of benefits you received in 2012. Our Bergen County CPA office offers you insight to this. Here are five tips from the IRS to help you… (more…)

Tax Planning for the 3.8 Percent Medicare Tax: Tax Tip Number Seven

Our final tax tip is here for strategizing against the 3.8% Medicare tax to fund Obamacare. As we indicated in our previous blogs, the additional 3.8% tax on investment income, commencing in 2013, affects individuals with modified adjusted gross income (MAGI) of $200,000 or more and married couples with a MAGI of at least $250,000. If you fall into one… (more…)

Tax Planning for the 3.8 Percent Medicare Tax: Tax Tip Number Six

A provision of President Obama’s health care law imposes a second Medicare tax on investment income for Americans classified as wealthy, effectively raising taxes on investment income and taxing investors twice. As we indicated in our previous blogs, the additional 3.8% tax on investment income, starting soon in 2013, affects individuals with modified adjusted gross income (MAGI) of $200,000 or… (more…)

Tax Planning for the 3.8 Percent Medicare Tax: Tax Tip Number Five

In our previous blogs, we have been telling you about the additional 3.8% tax on investment income that will be commencing in 2013. The tax not only applies to individuals as we have previously covered, but it also applies to estates and trusts, on the lesser of undistributed net income or the excess of the trust/estate adjusted gross income (AGI)… (more…)

Tax Planning for the 3.8 Percent Medicare Tax: Tax Tip Number Four

Did you hear?  Your interest, dividends, and capital gains may be subject to yet to an additional tax next year. To reiterate, the additional 3.8% tax on investment income, is coming next year, and it will affect individuals with modified adjusted gross income of $200,000 or more and married couples with at least $250,000.  This will result in paying 3.8%… (more…)

Tax Planning for the 3.8 Percent Medicare Tax: Tax Tip Number Three

As we indicated in our prior blogs, the additional 3.8% tax on investment income, will commence in 2013.  It applies to most joint filers with adjusted gross income above $250,000 and single filers with adjusted gross income above $200,000. Adjusted gross income is the number at the bottom of the front page of form 1040; it includes interest, dividends, capital… (more…)

Tax Planning for the 3.8 Percent Medicare Tax: Tax Tip Number Two

As we indicated in our previous blogs, the additional 3.8% tax on investment income, commencing in 2013, affects individuals with modified adjusted gross income (MAGI) of $200,000 or more and married couples with a MAGI of at least $250,000.   If you fall into one of these categories, you’ll pay 3.8% more in federal income tax on the lesser of your… (more…)

Tax Planning for the 3.8 Percent Medicare Tax: Tax Tip Number One

Nobody wants to pay more taxes, but for many of you, you may have no choice in this matter, thanks to Obamacare.  We decided to share some tax tips, in our next seven posts to try to help you plan better to avoid this particular tax commencing in 2013, and to preclude any surprises during your tax preparation.  Better you… (more…)

Tax Planning for the 3.8 Percent Medicare Tax on Investment Income

The health care reform package (the Patient Protection and Affordable Care Act and the Health Care and education Reconciliation Act of 2010) imposes a new 3.8 Medicare contribution tax on the investment income of higher-income individuals. Although the tax does not take effect until 2013, it is not too soon to examine methods to lessen the impact of the tax.… (more…)