Tax Deal Could Bring Unwelcome Surprises

January 7, 2013 – While those earning less than $400,000 ($450,000 for married couples) may be breathing a collective sigh of relief because Congress made their tax brackets “permanent” on New Year’s Day, a little digging reveals that maybe they shouldn’t sigh too deeply.

Not just yet anyway.

According to today’s Fortune article published in CNNMoney, there is good reason to be a little more concerned about your taxable income than first meets the eye.

For starters, the Alternative Minimum Tax (AMT) phaseout included in the recent tax deal potentially increases some taxpayers’ income by several  percentage points even though their brackets remained intact.

Don’t worry if you’re not completely sure what AMT is all about.  Your accountant surely does.

The article cautions that those making between $150,000 and $473,200 might want to start doing some early tax planning for 2013 because they could be impacted.

Fortunately for contingency fee plaintiff attorneys and individuals anticipating a settlement from a personal, non-physical (i.e. taxable) injury lawsuit, we offer a solution.

Anticipating something like this might happen, a few months ago we published a webinar entitled Structuring Your Taxable Settlements to demonstrate the value of tax deferral for those who qualify.  We even created a special website designed to highlight the problem and to help you make a more informed decision about your financial future.  Be sure to visit:

MyTaxableSettlement.com

It’s not always easy and it’s rarely fun.  But investing the time to plan for saving money is always time well spent.