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PRINCETON, NJ, March 08, 2013 /24-7PressRelease/ -- Consumers and financial advisors alike will come to see the new tax law, the American Tax Relief Act for 2012 as an inappropriate name for a law that was passed in 2013 and even worse, one that provides for significant tax increases with little or no "tax relief" for 2013 and beyond. Though there were some continuation of the lower tax rates, 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 taxes combined with the new taxes for 2013 on investment income to fund the 2010 Affordable Heath Care act, will likely impose a much higher tax liability on many individuals, families and small business owners than most people were expecting. the 2013 release of ExecPlan Express personal financial planning software release incorporates all of these changes to help guide consumers on how to manage their financial goals in this new environment. Unlike basic retirement planning software or online retirement calculators, ExecPlan Express financial planning software with its extensive experience in developing industry leading tax and retirement planning software, is an effective tool for evaluating how the new tax law changes will impact the financial objectives for most investors, pre-retirees and business owners. And this guidance will be valuable 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 FICA taxes on all individuals, and this is no small amount. For example someone making $100,000 a year would face a $2000 tax increase, and a $4,000 increase on a married couple with each earning $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 also a new higher estate tax rate of 40%, however the estate exemption amount will now be indexed to inflation so this year's exemption scheduled to be $5,250,000 could actually mean a modest drop in estate tax liability for people with a net worth less than $6.2 million. Still this rate though marginally higher, is now at the point where there may be substantial value in exploring an estate planning strategy to minimize the impact on surviving heir. With ExecPlan Express financial planning software's detailed year by year cash flow and net worth projections, complex estate strategies can quickly become easy to evaluate.
There was one bright spot in the new tax law and that was a permanent fix to AMT. However even this has many caveats since in some cases, higher capital gains or qualified dividends will also likely mean higher AMT exposure. Understanding what you can do or how much the new law will affect you will mean a commitment of both time and money by either hiring a professional financial advisor or dedicating the resources to acquiring and learning a professional financial planning software package. ExecPlan Express financial planning software with its needs based analysis design and its focus on the basic fundamentals of financial planning was created as an easy to learn and cost effective platform for both the consumer and the professional advisor seeking a financial planning tool to help guide them through a broad range of personal financial planning goals. "This year's new higher taxes have sparked a sharp rise from both financial advisors and consumers interested in learning how the new laws will impact their personal finances" explains Robert Fourman, Director of Marketing and Sales. "And we expect these concerns about the new tax laws will only mean more interest in the year ahead for both our retirement and financial planning software tools like ExecPlan and ExecPlan Express as well as our Android, and Apple mobile platform tax app TaxMode income tax calculator for 2013". Professional advisors or consumers looking for a comprehensive financial planning software to help evaluate the impact form all of the new tax law changes can obtain a free 30 day unrestricted trial version of ExecPlan Express at www.execplanexpress.com or visit the App store or Google's Play Store to obtain a free copy of TaxMode income tax calculator for 2013.
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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