LISA P. GONZALEZ, CPA, PLLC Business & Tax Specialists
LISA P. GONZALEZ, CPA, PLLC Business & Tax Specialists   

                             Tax Increases as a result of the                                                                   Patient Protection & Affordable Care Act:

With the passage of the Patient Protection & Affordable Care Act, new taxes were implemented in our tax system that will affect most taxpayers.  Some of these taxes include:

           
           
Type of Tax New Tax or Tax Increase         
Medicare Surtax on High Income Earners - (1)                 0.90%        
Medicare Surtax on Net Investment Income - (2)                 3.80%        
Capital Gains Tax on High Income Earners - Increase (3)                      5%        
Employee Part of Social Security - Increase                      2%        
Social Security Wage Base - Increase                  3.27%        
Threshold for deducting Medical Expenses - Increase                  2.50%        
           
 Total Tax Increase:                17.47%        
           
(1) Applies to Singles earning wages over $200,000 & Married Couples
     combined wages over $250,000 (Including Self-Employment Income)
           

(2) Applies to Singles with Adjusted Gross Income over $200,000 & Married Couples with

     Adjusted Gross Income over $250,000. 

 

     Net Investment Income includes interest, dividends, capital gains from stock sales,

     sales of assets, sale of your home, or any other capital gain, annuities, royalties and

     passive rental income. These amounts are included in your income to arrive at your

     Adjusted Gross Income to figure the tax.

 
   

 (3) Applies to Singles with taxable income over $400,000 & Married Couples with taxable income over $450,000

       
           
     
           
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