cred65 Posted January 1, 2013 Report Share Posted January 1, 2013 Income-tax rates. The top rate on ordinary income such as wages for joint filers earning more than $450,000 ($400,000 for single filers) would rise to 39.6%. Current law would be permanently extended for income earned below that level. Left unclear is whether the $450,000/$400,000 threshold refers to adjusted gross income (AGI) or taxable income. AGI doesn't include subtractions for itemized deductions, while taxable income does. (italics & bold added) adjusted gross income (AGI) or taxable income; seems like to me that is a glaring difference. I knew I should not have drank that whole bottle of vodka last night!! Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 1, 2013 Report Share Posted January 1, 2013 Here is the full text, all 157 pages. http://www.businessinsider.com/breaking-full-text-of-the-157-page-bill-to-avert-the-fiscal-cliff-2013-1 Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 1, 2013 Report Share Posted January 1, 2013 I could be wrong but it appears that the two popular credits with my clients (Teachers $250 above the line deduction and Home energy credits) did not make it in the senate bill?? I can see lots of unhappy taxpayers! Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 1, 2013 Report Share Posted January 1, 2013 SEC. 201. EXTENSION OF DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND SECONDARY SCHOOL TEACHERS. (a) IN GENERAL .—Subparagraph (D) of section 62(a)(2) is amended by striking ‘‘or 2011’’ and inserting ‘‘2011, 2012, or 2013’’. (b ) EFFECTIVE DATE .—The amendment made by this section shall apply to taxable years beginning after December 31, 2011 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 2, 2013 Report Share Posted January 2, 2013 Title IV ENERGY TAX EXTENDERS Sec.401.Extension of credit for energy-efficient existing homes. Sec.402.Extension of credit for alternative fuel vehicle refueling property. Sec.403.Extension of credit for 2- or 3-wheeled plug-in electric vehicles. Sec.404.Extension and modification of cellulosic biofuel producer credit. Sec.405.Extension of incentives for biodiesel and renewable diesel. Sec.406.Extension of production credit for Indian coal facilities placed in serv-ice before 2009. Sec.407.Extension and modification of credits with respect to facilities pro-ducing energy from certain renewable resources. Sec.408.Extension of credit for energy-efficient new homes. Sec.409.Extension of credit for energy-efficient appliances. Sec.410.Extension and modification of special allowance for cellulosic biofuelplant property. .Sec.411.Extension of special rule for sales or dispositions to implement FERCor State electric restructuring policy for qualified electric utilities. Sec.412.Extension of alternative fuels excise tax credits Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 2, 2013 Report Share Posted January 2, 2013 I think any discussion about what is changing or not is premature until Monday of next week. Quote Link to comment Share on other sites More sharing options...
taxxcpa Posted January 2, 2013 Report Share Posted January 2, 2013 I liked Joe Kernan's comment this morning on CNBC about the tax on all those billionaires making $ 400,000. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted January 2, 2013 Report Share Posted January 2, 2013 I find it interesting to think that those making, say, $375,000 are considered middle class. Until this, I never considered my self poor but am clearly now in the very lower middle class or upper poverty class. I must reorient my mindset. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 2, 2013 Report Share Posted January 2, 2013 The good news? Scientists wielding electron microscopes were able to detect in the small print of the fiscal cliff bill around $15 billion in spending cuts. The bad news? There are some $620 billion in tax increases — about 41 times as much as any taxpayer savings. Time for some politicians to grow up. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted January 2, 2013 Report Share Posted January 2, 2013 The good news? Scientists wielding electron microscopes were able to detect in the small print of the fiscal cliff bill around $15 billion in spending cuts. The bad news? There are some $620 billion in tax increases — about 41 times as much as any taxpayer savings. Time for some politicians to grow up. Personally, I think it is time for them all to grow up. None of them really seem interested in doing the job they were elected to do - lead and govern. Quote Link to comment Share on other sites More sharing options...
jainen Posted January 2, 2013 Report Share Posted January 2, 2013 >>say, $375,000 are considered middle class<< The term "middle class" doesn't have much meaning except for political promises. Remember, we are talking marginal rates, not absolute. The EFFECTIVE tax rate continues to rise gradually as income exceeds the top margin so there is very little difference between 375 and 400. Also note that the capital gains rate for that top bracket jumps a third to 20%. And they're also in phaseout again for deductions and exemptions, starting well below 375. They say the new rate only affects 2% of households--450 if they are married; 800 if they are shacking up. Only 425 if they're unmarried with children, but who cares about them? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 3, 2013 Report Share Posted January 3, 2013 And don't forget that most of the people making between 250K and 450K are subject to AMT, so their technical 'rate' is seldom what the tax tables say, anyway. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 3, 2013 Report Share Posted January 3, 2013 Another good resource to help in dissecting the new law http://www.accountingtoday.com/news/Fiscal-Cliff-Deal-Far-Reaching-Tax-Implications-65223-1.html?ET=webcpa:e6519:125313a:&st=email Quote Link to comment Share on other sites More sharing options...
taxtrio Posted January 4, 2013 Report Share Posted January 4, 2013 If you use "the taxbook", you can go the the taxbook website and put in your password for 2012(it's printed on the inside cover of your new taxbook). And they have posted a new, very easy to read summary of the new law. taxtrio Quote Link to comment Share on other sites More sharing options...
Randall Posted January 4, 2013 Report Share Posted January 4, 2013 CCH sent out a summary that is saying the $400k/450k numbers are taxable income, not AGI. Quote Link to comment Share on other sites More sharing options...
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