How Your Taxes Will Change in 2013 – In A Nut Shell

The bill approved in Congress to avert the fiscal cliff would bring the first major tax increase on high earners in 20 years.

Payroll Taxes Increase to 6.2% from 4.2% (almost a 50% increase)

Taxpayers Making $200,000 (Single), $250,000 (Couples) Would See Payroll (Medicare) Taxes Increase an Additional 0.9% on Top of the 6.2%

Taxpayers Making $400,000 (Single), $450,000 (Couples) Would See Top Marginal Income Tax Rates Increase to 39.6% from 35%

Taxpayers Making $400,000 (Single), $450,000 (Couples) Would See Long Term Capital Gains Rate Increase to 20% from 15%

Taxpayers Making $200,000 (Single), $250,000 (Couples) Would See an Investment Surtax of 3.8% on Interest, Dividends, Capital Gains and the Like on Sources Above the Limits

Estate Tax Exemption Amount Remains at $5.125 Million (adjusted from inflation), But Rate Increases to 40% from 35%

Taxpayers Making $250,000 (Single), $300,000 (Couples) will Face Exemptions and Deductions Phaseouts