Tax Tip: Tax Changes Aimed at the Wealthy

Business

0  Updated at 7:56 am, February 24th, 2014 By: ABC Digital
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Robyn Mackenzie/Thinkstock(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



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