Tax increases for 2015

[thebolt]

The following post reports my information was incorrect so I am deleting the information from this post. I don't want to spread false or misleading information.

[Dave]

Honestly there might be a few people here that these increases have any effect on, plus most of them have been in effect prior to this year.

The Medicare tax increase went into effect in 2014, and what it does is it collects an extra 0.9% on all wages over 200,000. So if you make less than that you still pay 1.45%.

The top income tax bracket is around 400,000 (450k if married), so unless you are making more than that from all income sources you are unaffected.

There is no such thing as an income payroll tax. Income taxes are your state and federal returns and payroll taxes are you medicare and social security taxes.

Capital gains tax is still 15% for most of us and it jumps to 20% for those in the top income bracket mentioned above.

Dividend tax is still at the flat 20% rate it has been at since 2013 (more on that magical year in a bit)

Estate tax is at 40%, not 55%. THe exemption is set at 5,340,000, so any amount less than this is still 0%.

Now, these increases were actually voted in due to the "fiscal cliff" bill in Dec 2012 and were made effective in 2013. The Senate passed this bill 89-8 with 40 Republicans voting yay, and the House passed it 257-167 with 85 Republicans voting yay.

This phony email has been making the rounds for over a year now.

[Dave_L]

What about the change to 529 plans? Has that been in effect or is that also only for the 1%?

[Dave]

Biggest changes to 529 plans affected more middle class people in that there were limits imposed on fees that could be charged, and the money was allowed to be used for more things like new electronics and having a high speed internet connection. Upper class benefit was an increase in gift tax exempt grandparent contributions to $14k.

[Dave_L]

My understanding is his plan is to cut the benefit of not being tax on the withdrawls from 529 plans no matter if its being used to pay for college.

http://www.washingtonpost.com/business/economy/critics-pounce-on-obamas-plan-to-cut-the-tax-benefits-of-529-college-savings-plans/2015/01/23/43ea75bc-a2a8-11e4-903f-9f2faf7cd9fe_story.html

[Dave]

He mentioned it, but I doubt congress would pass it.

[zteknik]

One thing for certain, as long as the D's control things taxes will always increase each year, more than likely double each year and they write themselves tax brakes....[Mad]

[KestrelBike]

This donovan guy makes me want to break something.


https://www.youtube.com/watch?v=5dENaCFek0M

[Bitter Clinger]

The libs have made much progress in cleaning up our air at government expense, therefore, each working American is to report to the nearest CDC office to be fitted with a oxygen meter, you will now be taxed on the oxygen you inhale and the carbon monoxide you exhale. Thank you for your cooperation.