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.
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: 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.