HAPPY NEW YEAR!
As of now, we’re getting close to new legislation to head off our plunge down that famous (and tedious) fiscal cliff. Here are some of the details of the law we expect to see:
1) Estate taxes will rise to 40%. But the exclusion from estate and gift taxes appears to hold steady at $5 million.
2) Tax rates will rise for couples earning $450,000 or more and singles earning $400,000. (Sounds like it’s no longer a good idea to get married for those in the higher wage brackets. Staying single, your taxes don’t rise until you earn $800,000 combined – i.e. the marriage penalty is back.)
3) Unemployment benefits are extended for one more year.
4) There will be a permanent fix for the alternative minimum tax – details to come.
5) Child tax credits and the Earned Income Credit are extended.
6) Education credits are extended.
See you next year!
I hope your New Year’s celebration is joyous, lighthearted, and without a care.
And that next year, all you wish for will be right there!
Here’s to a less taxing 2013!
As always, we love your feedback, opinions and ideas.
You are what makes all this fun – and interesting!
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Hugs from your favorite TaxNerd,
Eva Rosenberg, EA
Your TaxMama® is watching…out for you.