2012 Tax Guide Update
The outstanding uncertainties about the 2012 and the 2013 tax code were resolved after we sent the 2012 “Individual Investor’s Guide to Tax Planning” (January 2012 AAII Journal) to the printer. The American Taxpayer Relief Act of 2012 kept rates unchanged for most taxpayers, but added a new maximum tax bracket and adjusted various other deductions and exemptions.
After the law was passed, we updated the tax guide on AAII.com. However, since many of you may not have seen the update online or simply prefer to have the updated information in hand as a separate article, we are providing this addendum to the tax guide. The tax guide tables with updated rates for 2013 are linked below. The fully revised tax guide can be accessed online at www.aaii.com/journal/article/the-individual-investors-guide-to-personal-tax-planning-2012.
In this article
- What’s New?
- Social Security Benefits
- Take Advantage of Lowered Marginal Rates
- Tax Software, Books and Guides
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The 10%, 15%, 25%, 28%, 33% and 35% federal income tax brackets that were scheduled to expire at the end of 2012 are now permanent. Single filers with adjusted gross incomeabove $400,000 and married couples filing jointly with AGI above $450,000, however, will pay a new, higher maximum tax rate of 39.6%.
The payroll tax cut that had been in existence for 2011 and 2012 has expired. Effective January 1, 2013, the payroll tax (for Social Security) has reverted to its full rate of 6.2% of employee wages.
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