Now that Congress has acted, we want to break down the key issues of the American Taxpayer Relief Act, which is also referred to as the Fiscal Cliff Bill. Here's a breakdown of the key issues.
Individual Tax Rates
All the prior individual marginal tax rates are retained (10%, 15%, 25%, 28%, 33%, and 35%). For single filers with taxable income of over $400,000 and married couples filing jointly with over $450,000, a new top rate of 39.6% is imposed. Phaseout of Itemized D
(Here is a special early edition of our Tax Tip Tuesday Video blog arriving early due to the Christmas holiday) I was hoping I would be able to tell you that we had a tax bill passed before Christmas. Unfortunately, Congress and the President are still going back and forth on who will not get an extension of the Bush era tax cuts, which are due to expire at the end of the year. The most recent proposal from the President is that taxpayers with over $400,000 of taxable income
Today’s topic is a brief listing of various tax issues that Congress needs to address in the near future. These are issues that may be affected by the election. Before we go to that list, have you voted yet? Here are some of the items scheduled to expire at the end of 2012: The Bush era tax cuts will expire. This will cause an increase in all tax brackets and the elimination of the 10% bracket. It will also increase the long term capital gain rate to 20% and eliminate the 15%