NFL Draft Results - Who is #1 After Taxes?

As realtors remind us, it’s all about location, location, location.  

 

The Number One draft pick, Eric Fisher, received a signing bonus of $14,500,000 (rounded) while the Number Two’s bonus was “only” $13,800,000 (again, rounded), a substantial difference of $700,000.  But, Luke Joeckel, the #2 pick, will be playing for the Jacksonville Jaguars while the #1 pick will be playing in Missouri for the Kansas City Chiefs.  

 

Missouri state income taxes are even higher than Pennsylvania’s, a hefty 6%.  Plus, Kansas City has a local tax of 1%.  Florida has no state income tax.  Assuming Fisher lives in Kansas City, Missouri, his state and local income taxes on the signing bonus and his first year compensation will total roughly $1,042,000.  Joeckel, living in Florida, will pay no state and local income tax. 

 

The net effect is that our #2 pick’s take home pay will be nearly $300,000 higher than the #1.  Of course, at these salary levels, a difference of $300,000 may not be noticed after all. 

 

Please contact a member of the Acuity Advisors' Individual Services Team at 717.239.5180 if you have questions or need more information.

As required by the United States Treasury Regulations, you should be aware that this communication (including any attachments unless expressly stated otherwise) is not intended by the sender to be used, and it cannot be used, for the purpose of avoiding penalties under the United States federal tax laws.

The Obama's 2012 Tax Return

The Obama’s 2012 tax returns were signed on April 8, 2013 and have been posted on the White House website. The First Couple reported adjusted gross income of just over $600,000, a decrease of $200,000 from their 2011 tax return. Their federal taxes totaled $112,214 including $21,000 of alternative minimum tax and nearly $7,000 of self employment tax. Their overpayment of $16,815 was applied to their 2013 tax year.

How much do you REALLY pay in taxes?

Taxes are more than income taxes. On one level, we all know that. In addition to income taxes, we pay real estate taxes, social security taxes, sales taxes, fuel taxes, and the list goes on. Some of these are very visible (income taxes, especially at this time of the year) and some are more hidden.

A year ago, I gave you a link to the Total Insights website which computes your total personal tax burden.  Total Insights is provided as a service of the American Institute of Certified Public Accountants (AICPA).  In addition to computing the total tax burden, the website can also compute your tax burden at more than one location. If you are considering moving, this website can help you compare the tax costs at various sites, a valuable piece of information to have.

Please contact a member of the Acuity Advisors' Individual Services Team at 717.239.5180 if you have questions or need more information.


As required by the United States Treasury Regulations, you should be aware that this communication (including any attachments unless expressly stated otherwise) is not intended by the sender to be used, and it cannot be used, for the purpose of avoiding penalties under the United States federal tax laws.

Tax-Nerd Alert!

I know. Most tax topics are interesting only to tax-nerds. But this nerdy topic is important because it deals with terms we all hear every day in connection with taxes, which are:

Marginal Tax Rate vs.  Effective Tax Rate

IRS Releases Health Care Mandate Rules

One of the more controversial provisions of the new health care law is the requirement that each of us obtain “minimum essential health care coverage” beginning in 2014. A tax, known as the “shared-responsibility payment”, is imposed on taxpayers who do not obtain the minimum coverage. The IRS has now released some proposed rules giving details on this section of the law.

Starting in 2014, a taxpayer will be liable for the shared-responsibility payment if the taxpayer or any dependent does not have minimum coverage during any month. You are treated as having coverage for a month as long as you have coverage for at least one day during the month.

Where's the Form 1099?

In an effort to reduce costs, the PA Department of Revenue is not mailing Form 1099-G to taxpayers this year. But don’t relax ... the department is still sending the data to the IRS.

The PA Department of Revenue issues Form 1099-G to inform the IRS of overpayments on your Pennsylvania tax returns. This is important to the IRS because you may be required to include the overpayment in your federal taxable income.

Instead of mailing the forms, the PA Department of Revenue is making Form 1099-G available on their website at www.revenue.state.pa.us. You will need to register at the Personal Income Tax e-Service Center to get access, but once you have done so you will be able to print the Form1099-G and also check a box to receive the form by mail.

Save More for Retirement in 2013

The IRS is making it easy to save more for retirement in 2013. The maximum contributions to IRAs, Roth IRAs, and 401(k) plans are all increasing by $500.00.

In 2013, you can contribute $5,500 to either a regular IRA or a Roth IRA if you qualify. The maximum contribution to a 401(k) plan has been increased to $17,500 from $17,000. For those over age 50, the additional catch up contribution amount remains the same at $5,500.

In addition to raising the contribution limits, the eligibility to contribute to Roth IRAs is expanded. You can contribute to a Roth in 2013 if your income is under $188,000 for married taxpayers and under $127,000 for single taxpayers.


Please contact a member of the Acuity Advisors' Individual Services Team at 717.239.5180 if you have questions or need more information.


As required by the United States Treasury Regulations, you should be aware that this communication (including any attachments unless expressly stated otherwise) is not intended by the sender to be used, and it cannot be used, for the purpose of avoiding penalties under the United States federal tax laws.