Strategies advisers are using to help clients mitigate the new 3.8% investment income tax could inadvertently inflate their income for Medicare purposes, according to this article. The income stream from tax-exempt municipal bonds will be included when Medicare premiums are calculated, so clients should consider other investments that might mitigate the bite. Visit the AICPA PFP Division's Planning After the American Taxpayer Relief Act and the Net Investment Income Tax Toolkit for resources to plan for the new 3.8% tax.

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