5 Must Know 'U.S. Tax Law' Changes Impacting NRIs
4. Other Significant Provisions
Some other significant changes include fixing the Alternate Minimum Tax (AMT) and extending the American opportunity credit and child tax credit till 2017. The Alternate Minimum Tax was not indexed to inflation till date and would grab more people under its fold every year. AMT will be attuned to inflation and in 2013; the exemption amount is $51,900 for individuals and $80,800 for married couples filing jointly.
5. Medicare Tax
This is a new tax introduced under President Obama's new Healthcare Bill and not a part of the American Taxpayer Relief Act of 2012 but will surely have an impact on your 2013 taxes. A 0.9 percent additional rate will be implemented as the 'medicare tax' from the year 2013 on your wages and self-employment income in excess of $200,000 for single filers and $250,000 for married joint filers. An additional 3.8 percent 'medicare tax' will be implemented on investment income.
