So you'd end up paying 1.45% on the first $200,000 and 2.35% on the rest. The 0.9% Medicare surtax is a recent change and is intended to help pay for health reform. Investment income taxes: Capital gains, dividends and interest represent unearned income..
The tuition and fees deduction sounds good on the surface; it offers up to a $4,000 deduction. This option is open even if you donât itemize deductions. But since the deduction is for the taxpayer, not the student, it may not be the most beneficial for taxpayers with more than one student in the family.
Tuition And Fees Deduction. Taxpayers can deduct up to $4,000 in tuition costs for the year. Individual taxpayers can deduct the cost of college tuition for themselves, their spouses, and their dependents. The Tuition and Fees Deduction is an above-the-line deduction taken directly on Form 1040 or the shorter Form 1040A.