Forbes: Tax Planning Tips To Minimize Your 3.8% Medicare Surtax (November 9, 2021)

Forbes has published an article, “Tax Planning Tips To Minimize Your 3.8% Medicare Surtax”, which discusses how to minimize the effects of the Medicare Surtax. The article begins as follows:

Every year, it seems like I talk to more people who are getting an additional tax bill thanks in part to the 3.8% Medicare surtax. They often call me after the fact, looking for ways to minimize the sting of this additional tax which they often weren’t even aware of. Proactive tax planning can help minimize or eliminate the Medicare surtax for many taxpayers.

Don’t be surprised if your stockbroker, financial advisor, and CPA don’t offer tax planning solutions to help you avoid getting walloped by this often-costly tax. Most financial advisors don’t provide tax planning, and for that matter, quite a few aren’t even allowed by their firms to give tax planning guidance. This is a shame, as tax planning is one of the most valuable services financial planners can offer their clients who have high incomes. Many of my clients live in high-tax states like California and New York, making tax planning even more valuable.

California already has some of the highest state-level income taxes in the country, topping out at 13.3%. This is in addition to the top 37% federal tax bracket. If you are a taxpayer in the top federal and California tax brackets, you are also likely going to be subject to an additional 3.8% Medicare surtax on of your investment income.

Click here to see the full article:“Tax Planning Tips To Minimize Your 3.8% Medicare Surtax.”

Posted by Bennett Mansour, Associate Editor, Wealth Strategies Journal.

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