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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

There is a 5 year extension of direct charitable donations of up to $100,000 of IRA assets for people 70 1/2 or older.

The above the line deduction of up to $250 for teacher's classroom expenses was reinstated

The rules that phased out the deduction for itemized deductions that existed prior to 2011 are reinstated for tax years beginning 2013. During 2011 and 2012 there was no phase out for higher earners.

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.

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

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

The 2% employee payroll tax cut on social security withheld from paychecks was allowed to lapse, so effective January 1, 2013 all employees must pay the 6.2% social security tax.

Income above $400,000 for individuals and $450,000 for couples will be taxes at a rate of 39.6%, up from 35%.

There is a phase-out of the personal exemption for individuals making more than $250,000 and couples making more than $300,000. The “Pease“ limitation on deductions, which had previously been suspended, is reinstated with a threshold of $300,000 for joint filers and a surviving spouse, $275,000 for heads of household, $250,000 for single filers, and $150,000 (one-half of the otherwise applicable amount for joint filers) for married taxpayers filing separately. Thus, for taxpayers subject to the “Pease” limitation, the total amount of their itemized deductions is reduced by 3% of the amount by which the taxpayer's AGI exceeds the threshold amount, with the reduction not to exceed 80% of the otherwise allowable itemized deductions