Fiscal Cliff Tax Changes
The most frequently asked tax questions related to Fiscal Cliff Tax Changes
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Answer Tax Questions25C Residential Energy Credit Extended thru 12/31/13
Asked Tuesday, January 08, 2013 by an anonymous user
For purchases made in 2011, 2012, and 2013: Aggregate amount of credit is limited to $500. Taxpayer is ineligible for this tax credit if this credit has already been claimed by the taxpayer in an amount of $500 in any previous year.
For purchases made in 2009 or 2010: Aggregate amount of credit for all technologies placed in service in 2009 and 2010 combined is limited to $1,500
Qualified Leasehold Improvements
Asked Thursday, January 03, 2013 by an anonymous user
It also permits expensing of up to $250,000 of the cost of qualified leasehold improvement property, restaurant property, and retail improvement property, as was allowed under prior law.
Section 179 Limits Revised
Asked Thursday, January 03, 2013 by an anonymous user
For 2012, the maximum deduction was set at $125,000 (inflation-indexed to $139,000) with a $500,000 threshold (inflation-indexed to $560,000). The new law restores the previous limits of a $500,000 maximum deduction and a $2 million threshold through 2013, retroactive to 2012
New Markets Tax Credit
Asked Thursday, January 03, 2013 by an anonymous user
The New Markets Tax Credit (NMTC) program encourages private investment into businesses in low-income communities. Under this program, a client may obtain a 39 percent tax credit, spread out over seven years. The new law extends the NMTC program through 2013, retroactive to 2012.
Coverdell Education Savings
Asked Thursday, January 03, 2013 by an anonymous user
The new law permanently extends the expanded $2,000 contribution limit for Coverdell Education Savings
Individual Income Tax Rates
Asked Thursday, January 03, 2013 by an anonymous user
The new law permanently retains the 10 percent, 15 percent, 25 percent, 28 percent, 33 percent, and 35 percent individual income tax rates. However, the top tax rate of 35 percent is boosted to a 39.6 percent rate for single filers with income above $400,000 and joint filers with income above $450,000.
The above the line Tuition deduction
Asked Wednesday, January 02, 2013 by an anonymous user
The above-the-line deduction for qualified tuition and related expenses, which expired at the end of 2011 is now revived for 2012 and continued through 2013
Earned Income Tax Credit
Asked Wednesday, January 02, 2013 by an anonymous user
In 2013 both phaseout limits and credit amounts will revert back to lower levels. The Earned Income Tax Credit is a refundable credit for married couples filing jointly with 2012 earned income under $50,270 and singles who made less than $45,060. The more children you have, the more money you receive. Your income and family size determine the amount of the credit, but the maximum credit is $5,891 this year. The income thresholds for this credit have increased over the past decade, and the maximum credit has increased since the recession.
Contributions of capital gain real property made for conservation purposes
Asked Wednesday, January 02, 2013 by an anonymous user
A special rule for contributions of capital gain real property made for conservation purposes, which expired at the end of 2011 is now revived for 2012 and continued through 2013