Everyone hates paying more taxes, but new tax laws are hitting some taxpayers hard as they file their returns this tax season. Which new taxes should you know about, and how can you minimize their impact on your tax bill?
In the following segment from their video guide to investment planning, Motley Fool director of investment planning Dan Caplinger talks with Fool markets/IP bureau chief Mike Klesta about some of the new provisions hitting taxpayers as they file their 2013 returns. In particular, Dan points to the new Medicare surtaxes on wage and investment income, with different rates that hit high-income taxpayers at certain income levels. Dan also discusses the fiscal cliff debate from late 2012 and early 2013 and notes that even though the 39.6% tax bracket came back, the impact of tax hikes was far smaller than if lawmakers hadn't taken action to lessen the blow. Dan concludes that for these high-income taxes, the only way to avoid them would be to make less money, which for most wouldn't be a positive move.
Don't pay a penny more than you have to
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