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Taxes on Top of Whatever the New Rates Are:

“OBAMACARE” TAXES EFFECTIVE JAN. 1, 2013

INCOME TEST: INDIVIDUALS   ESTATES & TRUSTS
IF: MAGI >
$125,000 (MFS)
200,000 (S/HOH)
250,000 (MFJ)
?
 

INCOME IN TOP ESTATE /
TRUST TAX BRACKET ?

(APPROX $12,000 FOR 2013)

 

YES
 

 

YES

THEN:      
3.8% SURTAX ON 
“INVESTMENT
INCOME” OF:
Lesser Of:   Lesser Of:
 

1) MAGI OVER
THRESHOLD ABOVE
OR
2) NET INVESTMENT INCOME

 

1) ALL INCOME IN
TOP BRACKET
OR
2) UNDISTRIBUTED
INVESTMENT
INCOME DNI

PLUS:

.9 % SURTAX ON
“WAGES & SELF-
EMPLOYMENT
INCOME” OF:

WAGES + S/E INCOME
OVER
THRESHOLD ABOVE

 

NOT APPLICABLE
FOR CORPORATIONS,
ESTATES OR TRUSTS

 

MAGI = ADJUSTED GROSS INCOME PER TAX RETURN PLUS ANY EXCLUDED FOREIGN EARNED INCOME; INCLUDES TRADITIONAL IRA & QUALIFIED PLAN DISTRIBUTIONS.
MFS = MARRIED FILING SEPARATELY, S = SINGLE, HOH = HEAD OF HOUSEHOLD, MFJ = MARRIED FILING JOINT.
“INVESTMENT INCOME” = TAXABLE PORTFOLIO, CAPITAL GAIN, RENTAL & OTHER PASSIVE INCOME.

COPYRIGHT 2012 DONALD R. PINKLETON, CPA