Give Withholding and Payments a Check-up to Avoid a Tax Surprise
- 2013 could hold some unpleasant tax surprises because of :
o Increased long-term capital gains rates.
o Increased ordinary tax rates.
o A new 3.8% tax on net investment income.
o The new additional 0.9% HI (Medicare) payroll and self-employment tax.
o Life-changing events such as marriage, birth of a child, or new job.
o One-time increase in income from sales of stock or real estate.
- Under-withholding and underpaid estimates could cause penalties, but corrective actions before year-end may mitigate the penalties.