While the upcoming presidential election will no doubt have an effect on tax policy, the following tax provisions are currently set to expire, effective 1/1/13.
For a more comprehensive overview of these changes, check out our latest Tax Advisory Insights
- 2% temporary social security payroll tax cut on wages: The social security portion of the employee contribution will return to 6.2%.
- Qualified dividends rate: Qualified dividends are currently taxed at 15%. All dividends will be taxed at ordinary rates.
- Long term capital gain rate: Long term capital gains (sales of securities held more than one year) are currently taxed at 15%,but will change to 20%.
- Income tax brackets: Taxable income is currently taxed at 10%, 15%, 25%, 28%, 33% and 35%. The brackets will return to 15%; 28%; 31%; 36% and 39.6%.
- Dollar limit on dependent care expenses: These maximum qualifying expenses will return to $2,400 (from $3,000) for one child and $4,800 ($6,000) for two or more qualifying individuals.
Interested in more information on how the presidential election will effect our current tax policy? Click here to read the rest of this article on expiring tax cuts.
For more information on our Cleveland tax planning and preparation services, leave a message below or contact Jenna Staton by calling 440-449-6800.