• AAII Tax Guide
  • 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.

    What’s New?

    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 income (AGI) above $400,000 and married couples filing jointly with AGI above $450,000, however, will pay a new, higher maximum tax rate of 39.6%.

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    Charles Stadelman from CA posted over 3 years ago:

    It would be nice to have a time stamp on any document like 2012 Tax Guide Update so your readers know which "update" is the latest one, just in case there are further update.

    Michael Lang from IL posted over 3 years ago:

    I agree. Also would like an introductory paragraph describing the new changes. The inclusion of the embedded rate, benefits and phase-out links makes it difficult to print and reconcile with previous documents. Can we stick to one way or the other?

    Charles Rotblut from IL posted over 3 years ago:

    We changed the headline in the online version of the tax guide in January to signify the changes. This article was included in the March issue for those who either missed the update or prefer to have it in print from.

    The 2012 Tax Guide contains updated information on both 2012 and 2013 taxes and can be found at www.aaii.com/journal/article/the-individual-investors-guide-to-personal-tax-planning-2012.

    This update primarily focuses on 2013 taxes, but its information matches what you will see by accessing the revised online tax guide.

    Keep in mind that the print version of the January AAII Journal was sent to the printer in December, before a resolution to the fiscal cliff was reached.


    John Callahan from CA posted over 3 years ago:

    Any 2012/2013 tax code changes regarding 529 educational or Traditional IRA's , tax free accounts ( ex; maximums, use of monies without penalties, federal tax deuctibility ) ? John Callahan from California

    Charles Rotblut from IL posted over 3 years ago:

    Hi John,

    I do not recall seeing anything specific regarding changes to 529 plans, but I would check with a tax professional to be sure.


    John Phelan from FL posted over 3 years ago:

    IRA etc distributions are they subject to the 3.8% tax, assuming one is over the threshold ?.

    John Harburger from NY posted over 3 years ago:

    Regarding the 2012&2013 updated Tax Guide for
    capital gains÷nd rates in the 15% bracket.
    According to the Guide,I pay 0% in this bracket
    for long term gains.My account said this is
    incorrect,that the taxes have to be paid.
    I also paid these taxes last year with a different account,saying the same thing.
    Could you clarify?

    John Harburger from NY posted over 3 years ago:

    meant to say accountant in previous comment.

    Calford Scott from NY posted over 3 years ago:

    I have not seen any comments about the government's requirement that oversea's accounts of a certain amount be disclosed on tax returns.

    Any comments

    Kenneth Dillman from CO posted over 3 years ago:

    I assume you've realized that the maximum ROTH contribution listed in the guide for 2013 is incorrect. Should be $6500 for taxpayers over 50. Also, For anyone with taxable income (this includes qualified dividends and long term capital gains in the 15% tax bracket the qualified dividends and LTCG are not taxed. If the QD's and LTCG cause the taxable income to be in the next tax bracket, then the amount that caused the taxable income to be in the next bracket is taxed at 15%.

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