Facts on Taxes 2012 vs 2013

A couple things to point out on this comparison graph of tax changes from 2012 – 2013

  • The brackets all increased by inflation so you could make a bit more and not move to higher bracket
  • You would have to see your adjusted taxable income (net after deductions) go beyond $400k ($450k joint) before that 39.6% rate kicked in.  Remember this is NET, not gross income.
  • If you are in the 15% tax bracket making NTI of < 36k, you pay 0% on LT cap gains.  And you can make up to $200K (250k joint) NTI and still pay the 15% cap gains tax as before.
  • Yes estate tax went up from 35% to 40% but it only matters to those with estates > 5.35 Million and probably none of those people are reading this blog.
  • Payroll tax is FICA and it went back to 6.2% from the two year vacation whereby it was 4.2%.  This was a crappy idea anyway cause now it feels like a tax increase when it was a gift in the first place.
  • Limitations on itemized deductions only apply to those with NTI >$250k ($300k joint).
  • Nothing was done to the ATM tax which is a shame.

Author: Geoff

Quick rundown: Grew up in Lombard, Illinois, went to Arizona State University, worked as a CPA with Arthur Andersen & Co, then Laventhal and Horwath, then Rolling Stones, then Heron International, then Goodby Berlin and Silverstein in San Francisco. Moved to the foothills in 1990 and traded futures and designed websites. Married to Kate Stewart, now living in Colfax, CA. We have six grandchildren. I enjoy camping in our RV, hiking, kayaking, fishing, droning and cross country skiing Also conga drumming, photography and dogs.