2013 agi issues

[BOB W]

The new tax law talks about AGI exceeding $XXXXXX.XX then you will fall into the higher tax bracket. In all my tax years (40+) I have never figured a clients taxes based on AGI. What am I missing?

[JoshinNC]

Obamamath

Similar to Obamacare, a departure from everything you've previously known to be true and accurate.

[Jiggers]

I believe that this applies to the new .9% and 3.8% Medicare taxes. It is not based on taxable income.

[BOB W]

OMG........... HUH............ WOW........... Let me get this straight, itemized deductions, exemptions, and other tax reducing issues can reduce taxes but not this Obama add-on tax.........???????? Add-on tax hum.. alternative min. tax, how many more ways are there to attack a tax return to accomplish re-distribution of wealth?

[FEDUKE404]

Working with AGI restrictions

I believe that this applies to the new .9% and 3.8% Medicare taxes. It is not based on taxable income.

Correct. While I don't think anyone "figured a clients taxes based on AGI," that number is still relevant to many other tax issues.

FWIW: There are all kinds of limitations out there for AGI, MAGI, and likely a few other tweaks of the same type. It's a sneaky way of paying more taxes without....."raising taxes." Not unlike the current floor for deductible medical expenses going from 7.5% to 10% of AGI.

What comes to mind immediately are the new gotchas for the Omamacare add-ons (think new Forms 8959 and 8960). This is not to be confused with my favorite where folks paying Medicare B premiums may pay up to 3x what a lower-income Medicare enrollee may pay just because they "made too much" during the year.

FE

[taxxcpa]

Medical Deduction

It seems that medical deductions should be allowed in full and some other deductions, such as mortgage interest should have the 10% reduction. You have no control over what your medical needs may be, but you do have the option to live in something other than a million dollar house.

[Kram BergGold]

Phaseouts Determined by AGI

The phaseouts of exemptions and itemized deductions are controlled by AGI.

[Jiggers]

It seems that medical deductions should be allowed in full and some other deductions, such as mortgage interest should have the 10% reduction. You have no control over what your medical needs may be, but you do have the option to live in something other than a million dollar house.

If the Prez and Congress really wanted to help with medical expenses, all medical expenses should be deductible to arrive at taxable income. No 10% haircut. Fully deductible.