Come here often? Make XFINITY.com your homepage » close

close

Your XFINITY Connect session has timed out due to inactivity. Click here to go back close

Kiplinger: Smart Year-End Tax Moves for 2012

4. Boost Your 2012 Income

Deferring discretionary income, such as year-end bonuses, is a popular tax strategy when tax rates are expected to remain the same or decline. This year, though, high-income taxpayers may want to accelerate discretionary income to avoid a tax hike created by the health-care reform law. Starting in 2013, taxpayers will pay an additional 0.9% Medicare tax on income from wages over $200,000 ($250,000 for married couples.) Of course, if tax reform leads to lower rates, deferring income would still make sense. But that may not happen right away: rate cuts in the Tax Reform Act of 1986 didn’t take effect until 1987 and 1988.

(iStock)

More From Kiplinger:
The Most Overlooked Tax Deductions
Delayed Refunds in 2013? Adjust Your Withholding NOW!
QUIZ: Is It Deductible?



The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.

Ad Info - Ad Feedback

Ad Info - Ad Feedback

Loading...