(NEW YORK) — If you earn a considerable income, you may notice some changes when filing your 2013 tax return.
“There’s a new top bracket of 39.6 percent that applies for a married couple with taxable incomes above $450,000,” notes Eric Smith with the IRS.
He says higher income families will also start losing some benefits they’ve enjoyed in the past.
“For example, if you’re a married couple and your income is greater than $300,000, you start losing some of your itemized deductions,” Smith tells ABC News Radio.
And there’s a new 0.9 percent medicare tax for individuals making $200,000 or married couples making $250,000.
Richard Gartland with H&R Block points out there are potential pitfalls.
“There is an issue for households where you’ve got husband and spouse both working but neither one hitting $200,000, however they go over the $250,000 together,” he says.
Copyright 2014 ABC News Radio
Heather Kelly, CNN
Puja Bhattacharjee, CNN
Robert Mclean, CNN
Paul Menser, Bizmojo Idaho