Cash Flow Planning for Life - Helping you reach your personal & professional financial goals.

Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

Tax Changes

This is the fifth installment of Tax Planning for Changing Times: 5 Things You Should Know which can also be downloaded as a free eBook.

There are several other provisions or tax changes that were set to expire on December 31, 2012, that you should be aware of. These changes include the following:

  • Medical Deductions – For individuals under age 65, there will be a 3.5% increase (from 7.5% to 10%) AGI limitation on medical deductions.
  • Two Marriage Penalty Elimination Breaks – The standard deduction will no longer be 2 times single, and there will be a lower ceiling for those in the 15% tax bracket.
  • Qualified Dividends – The tax rate for qualified dividends will go from 15% to the taxpayer’s ordinary income tax rate. It could potentially go as high as 39.6%.
  • Charitable Distributions – There will no longer be tax free treatment of charitable distributions from IRA’s.
  • FSA or Flexible Spending Accounts – These accounts must not exceed $2,500, which is down from $5,000.
  • Over-the-counter Medications – These will no longer be reimbursable.

As with all of my eBooks, cash flow is always my main focus. Taxes are not the end-all be-all. You should weigh all relevant factors before making any changes to your personal tax or investment plan. At the end of the day, in my opinion, more dollars in your pocket is tax planning.

As with any tax law change the financial news publications do a good job of giving you the basics. However, tax law changes always require digging deep into the law in order to bring out the additional tax savings and long-term cash flow opportunities. Tax Planning for Changing Times

Interested in learning more about the tax changes, download my FREE eBook (right), or contact me online or call Makara & Associates,  Naples CPA at (239) 384-9688 or Fort Myers CPA at (239) 768-5008. “LIKE” us on Facebook.


This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.
LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

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