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PRINCETON, NJ, March 13, 2013 /24-7PressRelease/ -- Tax professionals and consumers alike may come to see the new tax law, the American Tax Relief Act of 2012 as an unusual name for a law that was passed in 2013 and one that actually provides for significant tax increases and with little or no "tax relief" for 2013 and beyond. Though there were the continuation for some of the lower tax rates from the 2001/2013 Bush era tax cuts, as well as a host of tax credits, the vast majority of the bill focuses on a substantial increase in both the number of new taxes and higher tax rates. These new higher taxes combined with the new taxes on investment income in 2013 to fund the 2010 Affordable Heath Care act will impose a much higher tax liability on many individuals, families and small business owners than what most people might be expecting.
Sawhney Systems new 2013 TaxMode income tax calculator available for desktop and mobile platforms such as the iPad, iPhone, Android tablet/phone and Windows phone now puts the power at your fingertips to assess how this new tax environment will impact your personal finances with and intuitive and powerful income tax calculator. Unlike desktop or online tax preparation software that "looks back" at what you owe now, TaxMode income tax calculator was designed to look forward and help plan what you will owe in the upcoming year, and in this new tax environment this could be more than you realize. Understanding how the new tax law changes will impact the financial objectives for investors, pre-retirees and business owners will be invaluable to just about everyone, since everyone who earns a paycheck will experience higher taxes, and for some these new taxes will be substantial. First there is the 2% increase in self employment taxes, and this is no small amount. For example a business owner making $100,000 a year would face a $2000 tax increase, and a $4,000 increase on a married couple who each earn $100,000 a year. Then for those families who earn just a little more than that, the tax burden quickly accelerates due to the phase out of personal exemptions, a reduction in allowable itemized deductions, and the addition of the new Medicare surcharge tax on investments and wages exceeding $250,000. Finally for the top bracket earners with wages at $400,000 a year and up, they can expect to see higher tax rates for earned income plus higher rates on capital gains and qualified dividends from their investments. There was one bright spot in the new tax law, starting in 2012 and beyond there was a permanent fix to AMT. However even this has its caveats since in some cases, higher capital gains or qualified dividends will also likely mean higher AMT exposure.
In the past understanding what you can do or how much a new law would affect you would mean a commitment of both time and money by either hiring a tax professional or dedicating the resources to acquiring and learning professional tax software. However, TaxMode blends an easy to use simple calculator like design with advanced income tax calculations. Add in the ability to email and print a detailed 1040, schedules A, B, C, D, E or SE and you will soon find you have the power to evaluate the most complex personal tax strategies or simply be able to tackle everyday tax questions like how much you will save renting a home versus owning.
TaxMode was created as an easy to learn and cost effective platform for both the consumer and the professional advisor seeking a tax planning tool to help guide them through a broad range of personal financial planning goals. "This year's new tax law with its higher taxes has sparked a sharp increase in downloads for our TaxMode income tax calculator" explains Jai Sawhney, CEO Sawhney Systems. "And we expect these concerns about the new tax law will only mean more interest in the year ahead as more and more people discover that they may face a substantially larger tax bite and begin looking for tools like TaxMode that can help them plan on ways to minimize their liability". To learn more visit www.taxmode.net or go to the App store, Google's Play Store or Windows Marketplace and search TaxMode income tax calculator.
Sawhney Systems is a provided of retirement, tax, and financial planning software as well as Andorid and Apple income tax apps for the professional financial advisor. For information on our products ExecPlan and ExecPlan Express please contact us at (800)850-8444
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