Each year the Social Security Administration (SSA) sets the maximum amount of wages subject to social security taxes (old age, survivor, and disability insurance). For 2018, the wage base is going up from $127,200 in 2017 to $128,700. Keep in mind that the employee and the employer each pay a 6.2% tax on the eligible wage base up to this maximum. … Read more >
Most taxpayers do not fall into the 3.8% Medicare surtax which is assessed on net investment income when the taxpayer has an adjusted gross income of over $200,000 for singles and $250,000 for married filing jointly. Net investment income includes interest, dividends, capital gains and certain passive investment income.
Occasionally a taxpayer with income below the hurtle rate will have a windfall transaction that pushes them above the AGI limit and triggers the tax.… Read more >
As the first day of summer approaches and schools are getting out for summer break, many students are looking for work. Some estimates place over a million Americans a year in an internship role. The University of Cincinnati believe so strongly in the value of on the job training that nearly every area of study incorporates an internship.… Read more >
I read two sequential articles today on these topics. The first addressed how many people are choosing to work in retirement while the second emphasized how few Americans feel they will have sufficient financial resources to retire.
Emily Brandon, the senior editor for Retirement at the U.S. News and author of “Pensionless – The ten-step solution for a stress-free retirement,” wrote laid out seven reasons to work in retirement. … Read more >
The Governor is tackling head on a problem that many business people believe hampers the Ohio business environment – municipal income tax administration. Ohio is one of only a handful of states that allow municipalities to assess income taxes upon those who work or live in their communities. Many of the jurisdictions in Ohio participate in RITA – Regional Income Tax Agency which facilitates the filing of municipal income taxes, but the balance of the municipalities have their own tax departments to which individuals and businesses must file and pay. … Read more >