Taxes - High Income Earners Lose Tax Deductions and Pay More in Taxes by jhon o

If your income is more than $ 137,000, you may find a big surprise on your tax return ... cutting away! And, of course, lose the deduction means you pay more tax.
Details of deductions such as mortgage interest, state, local, and property taxes, and charitable contributions phase out as income over the amount designated boundary. That the threshold values ​​that are designated for married couples (filing jointly) is more than $ 137,000.
For each dollar your income exceeds the threshold, you lose 3 percent reduction in the most detailed. (Medical expenses, investment interest, and accidents, theft, or loss of bets that are not subject to this restriction.)
This came as a surprise (and bad) of the tax for many taxpayers who get a pay rise and, following the standard advice from the banker or accountant, bought a bigger house for cutting added. They eventually lose some mortgage interest deduction.
And, even more sadly, their high-income taxpayers who believe in charitable giving will find that they lose an important part of their charitable deductions. The government cut the social programs of their budget. This will force charities to rely on individual contributors.
But charities are losing contributors as high-income taxpayers lose tax benefits. This phase is reduced out too!
Reduced phase-out in addition to the loss of itemized medical expenses and other deductions that are built into the system. Withholding is limited based on the percentage of your income.
For example, your medical expenses can be deducted only when they are more than 7.5 percent of your adjusted gross income. Along with increasing your income, an increase of 7.5 percent is calculated and exclusions so you lose part of your treatment cost reduction!
But wait! That's not all! You also lose your exception as to increase your income. Along with increasing your income is more than $ 206,000, you lose more increasingly reduced exemptions for yourself, your spouse and your dependents.
high income also lose compensation from real estate losses against their income (loss at $ 150,000 adjustable gross income) and the ability to use strategies such as Roth IRA, which allows your money to grow tax free.
Sometimes it just costs more to make more.