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New year, new tax policy

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    How 2013 will affect your wallet

  • Duration 2:36
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-- -- -- physical -- the live name you may want to get your finances in order before the start of the year so.

What change is coming out expecting 2013 -- break it all down -- is.

Personal finance expert very Gibbons thank you joining -- cannon.

-- first of all we've all heard about this fiscal -- that's a limiting.

But it doesn't just affect wealthy individuals -- affects all of that affects all of us -- a lot of talk about the fiscal cliff and there's a lot of components about the fiscal -- but the biggest threatens the expiration of the bush tax cuts.

If they expire we fall off that -- then you're looking at an average tax increase per house on the 3500 dollars a year about 300 more -- and this is something that affects everybody.

Not just wealthy individuals just to repeat that's important for people -- that now I -- and gift taxes as well some changes sites and changes here so the way it is now are currently states died -- up to five point 12 million are exempt from federal tax.

So you can -- -- on your -- free and clear no problems they're -- starting in 2013.

That exemption rate drops to just one million that's a lifetime exemption.

And at the top rate on transfers jumped from 35 to 55%.

So.

Message being.

If you haven't discussed estate planning any attorney you wanna get your -- and around now because you could get walked with some big tax that we -- keep hearing about some health reform changes can you boil it down to us what matters the most in terms of what we need to net orders a couple of changes -- -- -- -- -- about 200000 dollars or your married couple make 250000.

-- you're up against a higher Medicare tax on earned income and a three point 8% tax on unearned and coming your investment income for example.

Then in addition you've got changes that affect everybody here you -- 2500 -- cap on your flexible spending accounts.

Anything above that asking -- don't going down as taxable income.

And you itemize your returns your under the age of 65.

Your medical expenses you're out of pocket medical expenses have to exceed 10% of your adjusted gross and that's up -- from the current level of seven point 5% which people think -- -- -- special to begin at seven.

That's a big jump and can be difficult for an event on the Medicare enrollment there's an open enrollment period that's coming up going on -- -- going on now through December 7 so you wanna make changes to your plan.

Now would be the important time to do so it's really important stakes are high for retirees in particular who rely heavily on your prescription drugs because.

Those plans could be going up and 11 of the more popular plans is going up opinion by 23%.

And and finally only about five seconds left Social Security -- the cost of living had just nepotism miniscule one point 7%.

Doesn't go anywhere near covering the uptick we're seeing that Medicare premiums are right thank you very much -- here and -- -- we appreciate as always get too personal finances in order after.

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