20 Sep 2016

Tax Alert: Californians May Now Face Income Tax Rates Greater Than 50%

MinowCPA Guide to Effective Tax Planning in 2013 Dear Clients and Friends: In 2013, the Internal Revenue Service (IRS) and California Franchise Tax Board (FTB) increased the income tax brackets. The highest income earners now face a 39.6% federal marginal income tax rate. In addition, the IRS layered on two additional taxes for higher income earners, including a tax on Net Investment Income (NII) of 3.8% and a Medicare tax on wages and self-employment earnings of 0.9%.  California also increased its marginal income tax rate up to 10.3% for the highest earners. Thus, the combined Federal and State marginal income…

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