January 08, 2013
Local Financial Rep. Offers “Parachute”
Melville, NY.—Despite an agreement from Congress to temporarily postpone a hard fall over the “fiscal cliff,” local financial representative Paul Doyle, Investment Professional, Next Financial Group, LLC, urges community members to reevaluate their financial situations and consider how the new tax laws could affect their financial health.
“There is still too much uncertainty circulating throughout Capitol Hill to leave investment decisions to chance,” said Doyle. “I am in the process of helping my customers navigate through the fiscal confusion, and I would gladly help any of my fellow neighbors who are struggling to decode the government’s financial puzzle put the pieces together for their personal situation.”
In the wee hours of Jan. 1, Congress passed several tax changes that will indefinitely affect every working American’s income for 2013. For a majority of Americans, a 2 percent increase toward funding Social Security will go in effect immediately. In monetary perspective, an average American earning $50,000 will pay an extra $1,000 to the government in 2013.
Individuals who earn $400,000 and couples earning $450,000—which is up from Obama’s $200,000 and $250,000 and down from Boehner’s proposed $1 million limit—will see a tax rate increase from 35 percent to 39.6 percent. The tax on capital gains and dividends will also rise to 20 percent in addition to a new surtax on capital gains of 3.8 percent to aid health care reform.
In Congress’ attempt to show support for the lower and middle class, the Child Tax Credit of $1,000 for each qualifying child can be claimed as well as the credit for child and dependent care expenses. However, married couples who earn more than $110,000 and single filers who earn more than $75,000 will not be able to claim the Child and Dependent Care Credit.
The Alternative Minimum Tax (AMT) also took center stage in the bill. Congress created a permanent inflation “patch” to avoid reaching into the pockets of the middle class and affecting more than 31 million Americans.
Local Extends Services to Community, Add 1
“I know the tax law changes seem incredibly daunting and convoluted to some people,” said Doyle, “but I am determined to help every single person who walks through my front door leave with clarity on their own financial situation, and assist in making sound investment decisions in 2013.”
To learn more about Paul Doyle, Next Financial Group, LLC, please visit www.InvestLongIsland.com or call 631-351-8618.
Securities and Investment Advisory Services offered through NEXT Financial Group Inc. Member FINRA/SIPC. Neither NEXT Financial Group Inc. nor its representatives provide tax advice. Before taking any action, consult with your tax professional.