In this article, Christopher Parr provides five steps to prepare for major or potential income and investment tax changes for the 2013 tax year. He first explains the several earned income-related changes and the investment income-related changes that require monitoring and planning as the status becomes clearer. Earned income-related changes include employee social security, Medicare payroll and self-employment tax. An investment income-related change is the favorable Bush-era tax rates on investment dividends expire and reset. In the attached chart, find A Recap of Key Tax Law Provisions and Rate Changes provided by Parr Financial Solutions.
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Christopher Parr CFP® is founder of Columbia-based Parr Financial Solutions Inc., a fee-only wealth management firm.