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Five Taxes That Increased with the American Taxpayer Relief Act of 2012

Rich taxpayers may end up paying higher tax bills this season. Due to the changes in the 2012 tax law, the American Taxpayer Relief Act of 2012. Anyone who makes enough to consider themselves wealthy will pay higher taxes on their income.

The first bill that raised taxes for the wealthy is The American Taxpayer Relief Act of 2012. This bill is also commonly known as the fiscal cliff tax bill. This law prevents rich taxpayers from reducing their bill by utilizing certain tax privileges.

American Taxpayer Relief Act of 2012
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The second change affecting wealthy taxpayers comes from the Affordable Care Act. Two provisions from this law went into effect in 2013. Clearly, this bill targets high-income taxpayers, but the language in the bill fails to provide a numeric value for the term high-income.

These two laws created five significant changes for wealthy taxpayers. These changes are the main causes for higher tax bills and reduced privileges.

Rich taxpayers may end up paying higher tax bills this season. Due to the changes in the 2012 tax law, anyone who makes enough to consider themselves wealthy will pay higher taxes on their income.

Tax rate increase from 35% to 39.6%

This change applies to regular or ordinary income. It affects single taxpayers who earn $400k per year and married couples who earn $450k per year. It also affects married couples who file separately if their income reaches $225k per year.

Capital gains tax increase of 5%

Wealthy taxpayers with numerous investments will pay more taxes this season. Income earned from real estate, currency, and paper assets will increase from 15% to 20%.

Payroll tax increase of 0.9% in American Taxpayer Relief Act of 2012

Employers must subtract an extra 0.9% from employees who earn $200k or more. Self-employed individuals must adhere to this change as well.

Tax on net income from investments.

The healthcare law adds a 3.8% tax to single individuals earning $200k and married individuals earning $125k. This tax applies to net earnings from capital gains and other investments.

Lower dollar amounts on exemptions and deductions.

The previous exemptions and deductions for wealthy individuals no longer apply. The dollar amounts for these deductions are lower and some exemptions are obsolete. Taxpayers will need to file their income taxes before they could come up with a dollar amount for this loss. Using an updated tax software like TurboTax will reduce the confusion that may occur during the calculating and filing.

Some tax preparers may use the new laws as an excuse to raise fees for wealthy taxpayers. If you have a high income, you can avoid this headache by using TurboTax instead. As long as you are using a recent version, you will be able to accurately file your taxes with the updated percentages and new deductions, exemptions, and provisions.

Turbo Tax Released to Solve Your Tax Return Troubles

Day 56 - Tax Time

Day 56 – Tax Time (Photo credit: absoblogginlutely)

TurboTax 2014 will enable you to get a tax refund that will make you a richer man. It is of significant advantage to you, because it has the capability to find loopholes in the contemporary tax code.

Additionally, TurboTax can also track any changes in the tax code for you only, over several years.

The tax return software guides you through any bureaucratic obstacles in the process of filing the relevant forms. It takes you systematically through each step, while offering you value for your tax return.

This software comes with an instruction manual, that originates straight from the IRS. The process is very straightforward and simple to follow, with no stone left unturned. In regards to the filing taxes, these tax programmers are more advanced that most laymen.

Most persons procrastinate when it comes to the filing of their taxes, but TurboTax ensures that you get the best deal on any taxes you pay. Their information processing ability, through the use of e-files, contributes towards the achievement of your goals in an impeccable manner.

Paper and pen, as used in the old school, are now tools of the past. Today, the hyper-textual environment of cyberspace is where everything is focused, and it is common knowledge that anything is possible in cyberspace. The umbrella group for TurboTax is Intuit Incorporated.

A connection to the Internet is all that is required to use TurboTax 2014 efficiently. It can also be downloaded online. There are several benefits of TurboTax, including the fact that the methodology it follows is neither complex nor complicated. Each user of the program is also given individualized treatment.

TurboTax’s deductions and reimbursement plan will satisfy you as you seek to process your tax returns. There are no risks involved and the program is currently the #1 software available on the market. In fact, with TurboTax 2014, you can consider yourself to be in safe and reliable hands.