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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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%.
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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Discussion
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.
posted 15 days ago by Charles Stadelman from California
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?
posted 15 days ago by Michael Lang from Illinois
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.
-Charles
AAII
posted 15 days ago by Charles Rotblut from Illinois
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
posted 14 days ago by John Callahan from California
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.
-Charles
posted 13 days ago by Charles Rotblut from Illinois
IRA etc distributions are they subject to the 3.8% tax, assuming one is over the threshold ?.
posted 1 day ago by John Phelan from Florida
