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Compromise Reached, But How Does It Effect Tax Planning For 2013?
In December, 2012, we addressed the looming “fiscal cliff” tax ramifications and potential last-minute tax planning. With legislation finally passed in late December, in order to prevent widespread tax increases and steep spending cuts, it is a good time to look at the highlights of the legislation and how it affects taxpayers.
- Income tax rates. A compromise was reached on income tax rates. Although neither side attained its goals, tax cuts were extended on incomes up to $400,000 for individuals and $450,000 for couples. Earnings above that are taxed at 39.6%, up from 35%. Many liberals and conservatives were unhappy with this compromise that extends the tax cuts for most taxpayers. Unless new legislation is passed, this extension is permanent.
- Estate taxes. The federal estate tax exemption remains at $5 million (adjusted for inflation) and up to $10 million for family estates. Without legislation, the exemption was set to return to $1 million for 2013. The top estate tax rate is set at 40%, up from 35%. This change is permanent.
- Capital gains and dividends. Capital
As I have done in the past, I am utilizing the experience of a family member, my son, as the basis for this family law blog article. He and Renae have been engaged for less than a year and they decided that they would like to “tie the knot” on New Year’s Eve 2012. Unfortunately, they had not looked into the marriage laws of Illinois (where they live) or of Ohio (where both used to live and where their families live) to determine the requirements for obtaining a marriage license.
As an alcohol and drug abuse counselor, I work with many people who are struggling with addiction or substance abuse. Whether you are the one struggling or you have a loved one who is battling the disease, I always recommend a Twelve Step Program. Unfortunately, I am almost always met with resistance. Much of that resistance comes from misconceptions about what 
The new Ohio texting ban went into effect on January 1, 2013. No longer are police just issuing warning tickets as they had been doing since September 2012. After reviewing H.B 99 it’s fairly evident that the law primarily focuses on minors under the age of 18.
Attorney Mark Chinn of Jacksonville, Mississippi, caught my attention with a 
I have been practicing family law for 34 years. In my opinion the process by which the State of Ohio has gone about establishing child support orders in Juvenile Court without including any parenting or visitation provisions was patently unfair to fathers. I appreciate that taxpayers shouldn’t have to shoulder the burdens of paying welfare or other assistance for children when it is the joint legal responsibility for their mothers and fathers to do so. But is it fair to establish a child support obligation and not include any reciprocal provision for the fathers to have the right to visit their child(ren)? It is no wonder that there are so many uninvolved fathers out there. Psychologists will tell you that a child who has had both parents involved in his/her upbringing stands a much better chance to become a stable healthy adult. That is why I am very excited about this new, long overdue Ohio project!
There are many factors to consider when selecting your