Fiscal Cliff Tax Changes

Unemployment Benefits Extended

Asked Wednesday, January 02, 2013 by an anonymous user

CPA Answer:

Unemployment benefits, which were set to expire at the end of 2012, are extended for the long-term unemployed through the end of 2013
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Fiscal Cliff Tax Changes

Official Name of "Fiscal Cliff" Legislation

Asked Wednesday, January 02, 2013 by an anonymous user

CPA Answer:

H.R. 8, “the American Taxpayer Relief Act.” was passed by the Senate early on Jan. 1, 2013, by a vote of 89 to 8 approved Late the same day, the House of Representatives followed suit and passed the bill by a vote of 257 to 167.
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Fiscal Cliff Tax Changes

Sales Tax Deduction Extended

Asked Tuesday, January 01, 2013 by an anonymous user

CPA Answer:

The state sales tax deduction was reinstated for 2012 and extended for 2013
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Fiscal Cliff Tax Changes

Capital Gains and Dividends Rates

Asked Tuesday, January 01, 2013 by an anonymous user

CPA Answer:

Capital gains and Qualified Dividend rates remain at 15% for individuals with income up to $400,000 and families up to $450,000. Capital gains and Dividends for income exceeding those limits would be taxed at 20%
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Fiscal Cliff Tax Changes

Bonus Depreciation Extended for 2013

Asked Tuesday, January 01, 2013 by an anonymous user

CPA Answer:

Bonus Depreciation was extended for an additional year on new property and equipment
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Fiscal Cliff Tax Changes

Tax Credits Extended for 5 years

Asked Tuesday, January 01, 2013 by an anonymous user

CPA Answer:

The $1,000 child tax credit, the enhanced earned income tax credit, and the $2,500 American Opportunity college tuition credit has been extended
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Fiscal Cliff Tax Changes

Various Tax Credits Extended

Asked Tuesday, January 01, 2013 by an anonymous user

CPA Answer:

Tax Credits extended include the Returning Heroes and Wounded Warriors Work Opportunity Tax Credit, the New Markets Tax Credit, The Low-Income Housing Tax Credit, the Research and Development Tax Credit and tax credits for Clean Energy
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Fiscal Cliff Tax Changes

Estate Tax Exemption Remains at $5.12 Million

Asked Tuesday, January 01, 2013 by an anonymous user

CPA Answer:

The first $5.12 million of one' estate valuation remains exempt from federal estate tax and will be indexed for inflation but the top tax rate on estates was changed from 35% to 40% for 2013.
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Fiscal Cliff Tax Changes

Alternative Minimum Tax Patch is Permanent

Asked Tuesday, January 01, 2013 by an anonymous user

CPA Answer:

Finally Congress has permanently addressed the alternative minimum tax issue and indexed the annual exemption limits for inflation, retroactive for 2012.
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Fiscal Cliff Tax Changes

Credits Extended for One Year Only

Asked Tuesday, January 01, 2013 by an anonymous user

CPA Answer:

Tax credits for research and development costs, renewable energy such as wind energy were extended for one year only
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