- Lower income taxpayers’ ordinary federal rates will increase 50% from 10% to 15%, and those in the highest tax bracket could see an ordinary tax rate increase from 35% to 39.6%.
- Taxpayers in the lower income tax brackets have not paid taxes on their long term capital gains over the past several years, but starting in 2013 their rates will increase to either 10 or 20%. Taxpayers in the remaining tax brackets will see a 33.3% increase in their long term capital gains tax rates starting in 2013.
- Qualified dividends will no longer receive a preferential reduced tax rate and will be taxed at ordinary income tax rates.
Cover & Rossiter will be holding seminars at both our Wilmington and Middletown offices to discuss these changes and offer strategies for being proactive in 2012. The dates of these seminars are as follows: