In calculating the extra premiums for 2007, the government will generally use income data from tax returns for 2005. For a single person with income of $80,001 to $100,000, and for each member of a couple filing a joint return with combined income of $160,001 to $200,000, the surcharge will be $12.50 a month, and the total premium will be $106 a month.The surcharge rises with income. For an individual with income greater than $200,000 and for each member of a couple with combined income exceeding $400,000, the surcharge will be $68.60 a month in 2007, and the total premium will be $162.10 a month. The surcharge will be much higher in 2008 and later years.
As to "much higher", the Kiplinger Tax Letter advises that the '08 surcharge will be double those for '07 and and it will be triple for '09.
If a MFJ client gets pushed into the $160-200K range for one year in 2006, his surcharge for '08 would appear to be $25/mo. With AGI over $400K, the surcharge would be $137.20, but the incremental increase as a result of a $35K capital gain would be less than $40/mo.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.