Sunday, October 28, 2012

Several tax changes to expect in 2013

The outcome of the election will effect domestic and foreign policy to be sure. Many have heard about how in 2013 historically low gift and estate taxes will revert to pre-2010 levels. However, 2013 could bring more surprises to your wallet. Here are some surprises to anticipate. Unless congress acts income tax rates will increase. Currently the lowest tax rate at the federal level is 10% and that would be increased to 15%. Additionally, for married taxpayers who earned between $58,900 and $70,700 during 2012 … the tax bracket would increase from 15% to 28%. For single taxpayers earning more than $85,650 and married taxpayers earning more than $142,700, the tax rates will all increase by a minimum of 3% with the highest rate jumping from 35% to 39.6%.” For more information - http://www.jdsupra.com/legalnews/how-will-the-expiration-of-the-bush-tax-58195/ There will be a new Medicare tax Under current law, wages are subject to a 2.9% Medicare tax, with individuals and employers paying 1.45% each. However, with the implementation of the additional Medicare tax, individuals whose income exceeds a threshold amount will have to pay an additional 0.9% Medicare tax on wages in excess of the threshold. As a result, in 2013, the top Medicare tax rate for individuals will be 2.35% (1.45% plus 0.9%) for wages above the threshold. There is no corresponding Medicare tax increase for employers. For more information - http://www.jdsupra.com/legalnews/irs-guidance-on-additional-medicare-tax-59116/ Medicare investment on investment income will become due The Medicare Contribution Tax will be levied on net investment income and higher-income bracket trusts, estates, and individuals. A taxpayer will be required to pay 3.8 percent of the lesser of the taxpayer’s net investment income, or the amount by which his or her modified adjusted gross income exceeds $250,000 (for a couple filing a joint return), $125,000 (for married individuals filing separate returns), and $200,000 (for all other individual taxpayers). Net investment income includes interest, dividends, annuities, royalties, rents, capital gains, and passive activity income. For more information - http://www.jdsupra.com/legalnews/estate-planning-update-september-2012-08742/ Social Security tax cuts will end The temporary 2% cut in the employee Social Security tax rate is scheduled to expire on December 31, 2012. The current 4.2% rate will revert back to 6.2% unless it is extended in federal legislation. For more information - http://www.jdsupra.com/legalnews/fica-tax-rates-will-change-for-2013-56208/

Monday, October 15, 2012

Free Flu Shot for Seniors in Ardmore

Residents ages 65+ can register to receive a free flu shot on Tuesday at the Merion Fire Company of Ardmore, according to a Lower Merion Township news release. The release is reprinted below: Adults ages 65 and older can take advantage of free flu shots that will be offered on Tuesday, October 23, 2012. From 1 to 3 p.m. at the Merion Fire Company of Ardmore, 35 Greenfield Avenue in Ardmore, senior citizens are invited to participate in this program affiliated with Bryn Mawr Hospital's Community Health Services Department. Main Line Health will assist in pre-registration and paperwork. Advance registration is required: only 50 vaccine shots are available. Call 1-866-CALL-MLH (or 1-866-2255-654) for more information.

Sunday, October 14, 2012

The passing of Arlen Apecter

I just hear about the passing of the former PA Senator Arlen Specter. My thoughts are with his family, friends and his extended PA family.