Tag Archives: 2013 Tax Rate Increases

Is Being Effective Better Than Being Marginal?

The tax code is filled with terms we rarely use in everyday conversation. Two of the more common are Marginal Tax Rates and Effective Tax Rates. Knowing what they mean can help you think differently about your potential tax obligation. Marginal Tax Rate: This is the tax rate applied to the “next” dollar you earn. Since our income tax rates… (more…)

IRS Interest Rates Remain the Same for the Third Quarter of 2013

  The Internal Revenue Service today announced on May 24, 2013, that interest rates will remain the same for the calendar quarter beginning July 1, 2013, as in the prior quarter. Our Bergen County CPA office offers you insight to this. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation]; three… (more…)

Tax Tips for Tax Season: #14 Top Estate Tax Rate Set at 40%

    As a Bergen County CPA firm that provides Bergen County tax and accounting services we are happy to share helpful information this tax season. Check out our tax tip below: The new law sets the estate exemption at $5,000,000 with a top tax rate of 40%. The exemption amount will be adjusted annually for inflation. The change is… (more…)

New Medicare Taxes Take Effect in 2013

  The 2010 health care reform legislation included several provisions that go into effect this year. Among them is the increase in Medicare taxes for taxpayers with incomes above certain levels. Here is an overview of these two new taxes. Our Bergen County CPA office offers you insight to this. FIRST, the payroll Medicare tax will increase from 1.45% of… (more…)

“Chained CPI”: What’s it all about?

  As the politicians in Washington start once again to tackle the same old problems, you’re likely to hear more about a new way of measuring inflation called the “chained CPI.” Our Bergen County CPA office offers you insight to this. The standard way to measure inflation has been with the consumer price index (CPI). The CPI has been used… (more…)

Congress Averts Tax Portion of Fiscal Cliff

The “American Taxpayer Relief Act of 2012” approved by Congress just after we plunged over the “fiscal cliff” restores and modifies several expired tax breaks, but doesn’t address other issues.  Our Bergen County CPA office offers you insight to this.  Here are the highlights of the new law’s provisions for individual taxpayers. * Individual income taxes. Only the wealthiest taxpayers… (more…)

2013 Personal Income Tax Rates

 As most of us have learned by now, the expiration date on the Bush income tax cuts has been eliminated. Our Bergen County CPA office offers insight to this. But tax rates on high-incomers increase for the first time since 1993. A 39.6% rate now applies to taxable income over $400,000 for singles, $425,000 for heads of household and $450,000… (more…)

Tax Issues Addressed in Fiscal Cliff Legislation

    If you have been following all the political drama connected with the “fiscal cliff,” you know that Congress finally passed legislation that dealt with the tax portion of the issue, leaving the spending half of the problem for later resolution. Here are the highlights of the new tax law, the “American Taxpayer Relief Act of 2012.”  Our Bergen… (more…)

Don’t Let the Alternative Minimum Tax Catch You by Surprise

According to the Congressional Research Service, 34 million taxpayers could be hit by the alternative minimum tax (AMT) this year. Are you one of the many unsuspecting or uninformed taxpayers who will be caught by the AMT in 2012? With a better understanding of the rules, you may be able to avoid or reduce adverse tax consequences.  Our Bergen County… (more…)

Impending 2013 Tax Rate Increases

Provided that Congress fails to extend the Bush tax cuts, many significant rate changes and other substantive changes will take effect in 2013.  This will definitely impact both the tax planning and tax preparation considerations for many Americans. If Congress allows the Bush tax cuts to expire, ordinary income tax rates will increase for most individual taxpayers beginning in 2013.… (more…)