Money Talks News: New Ways the Rich Are Getting Hammered by Taxes
Fri, 21 Feb 2014 14:24:26 GMT —
There's no question being rich has its appeal.
But staying rich has gotten a little harder this year, thanks to more taxes on those with high incomes. How is Uncle Samtaking that extra bite? Let's count the ways. First, rates.
While the highest federal tax rate for most Americans is 35%, those with high incomes get their own special rate: 39.6% It hits those with taxable income over $400,000 single, $450,000 joint.
For the 99 percent, the most you can pay on long term capital gains is 15 percent. But the 1 percent now have their own, higher rate: 20 percent. It affects the same people: Taxable incomes over 400,000 single, 450,000 joint.
These changes come courtesy of the American Taxpayer Relief Act. It was passed last January. And that's not all...not even close.
Your 2013 net income from interest and dividends could be subject to the new, 3.8 percent "Medicare contribution tax."
This applies if your adjusted gross income exceeds $200,000 single, $250,000 joint.
Self-employed? You may get to pay an extra .9 percent Medicare surtax if your self-employment income is above $200,000 single, $250,000 joint.
And finally, those with high incomes are subject to losing their personal exemptions and itemized deductions. Bottom line?
While being rich is certainly still worth aiming for, it's getting a lot more taxing.
No matter how much you earn, we've got a ton of tax information you need to see. Go to MoneyTalksNews.com and search for "Tax Hacks 2014."