For 2013 and future years, federal income tax laws have changed. Here’s what you need to know.

  • Many families with incomes of $250,000 and higher will see increased federal taxes on 2013 income; speak with your accountant or other advisor before 2013 ends to ensure that you understand your own tax situation.
  • An effective tax rate of up to 43.8% is the new reality for many hard-working individuals.
  • Charitable gifts may be less affected by caps and phase-outs than other kinds of deductions.

2013 Income Tax Changes – An Overview

Threshold Recap



39.6% Ordinary Rate

Taxable Income > $400k

Taxable Income > $450k

20% Qualified Dividends and Long-Term Capital Gains

Taxable Income > $400k

Taxable Income > $450k

0.9% Additional Medicare Tax

Wage & SE Inc > $200k

Wage & SE Inc > $250k

3.8% Net Investment Income Tax

NII AGI > $200k

NII and AGI > $250k

Itemized Deduction and Exemption Phase-outs

AGI > 250k

AGI > $300k

















Net Investment Income (NII) = interest, dividends, capital gains, rental and royalty income, passive business income

Charitable Giving Opportunities

Pre-Fund 2014 Giving and Get Tax Deduction in 2013

Many people are establishing donor advised funds in 2013 with the dollars they would have used to make charitable gifts in 2014.  They receive the federal tax deduction in this year, and the funds can be given away in the future, to any nonprofit nationwide.  This simple form establishes a fund.

Don’t Forget Appreciated Stock

In addition to your charitable deduction, long-term capital gains on appreciated investments are not recognized when the asset is given to a charity.  If you’re giving stock, please try to do so as early as possible.  Your shares must be received and accepted into the nonprofits account before your gift is final, and that process often takes a few days.  Call 609.219.1800 or see our stock transfer form.

Contribute to your own Community

Our Greater Mercer Grants and Fund for Women and Girls invite you to give to the growth and well-being of the community we love; you can also co-invest with the Community Foundation to help local nonprofits grow stronger. Make a gift directly, or make a grant from your Fund.

Make a Charitable Gift Directly from your IRA

Charitable people over age 70 ½ have a unique opportunity to make charitable gifts directly from their IRAs, with tax benefits.

For more information, call 609.219.1800.