American Taxpayer Relief Act 2012
President Signs Agreement to Avert Fiscal Cliff! On January 2, 2013, the President signed the American Taxpayer Relief Act of 2012, averting the "Fiscal Cliff." The Act allows the Bush-era tax rates to sunset after 2012 for individuals with income over $400,000 and families with incomes over $450,000; permanently "patches" the alternative minimum tax (AMT); revives many now-expired tax extenders, including the research tax credit and the American Opportunity Tax Credit; and provides for a maximum estate tax of 40 percent with a $5 million exclusion. In addition to an extension for most taxpayers of the lower individual income and capital gains tax rates, marriage penalty relief, and more than 50 other tax benefits popularly referred to as the "Bush Tax Cuts," the legislation makes over 100 changes to the Internal Revenue Code.
Highlights of The American Taxpayer Relief Act of 2012 include: -39.6% tax rate for incomes above $400,000 ($450,000 families) -All other Bush-Era Tax Rates extended -20% Capital Gains/Dividend Tax Rate for incomes above $400,000 ($450,000 families) -Permanent AMT Patch -3.8% Net Investment Income Tax for incomes above $200,000 ($250,000 families) -0.9% Medicare Tax Surcharge for incomes above $200,000 ($250,000 families) -2% Increase in Social Security Tax, Employee Share -Personal Exemption Phaseout and Limit on Itemized Deductions for incomes above $250,000 ($300,000 families) -Five-Year Extension of American Opportunity Tax Credit -One-Year Extension of Business Tax Extenders -And more! 01/03/2013
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