Who Would Be Affected By Taxmageddon?
A 2013 Snapshot
All taxpayers would pay more because of the elimination of the 10 percent tax bracket.
Investors would lose tax breaks on capital gains and dividends. At present, taxpayers in the 15 percent or lower tax bracket pay zero Federal tax on dividends and capital gains. All others pay only 15 percent. This deal ends on 12-31-2012.
Sell stocks at a gain before the end of the year.
Parents with young children would get half as much Child Tax Credit and a smaller Child Care Credit.
Students working on a college degree would be big losers. The American Opportunity Tax Credit, which gives a credit of up to $2,500 per student, will be gone.
Lower income taxpayers with children would find that adjustments to the Earned Income Credit and to the refundable Child tax Credit create smaller refunds.
Taxpayers facing foreclosure on their principal residence will not be able to erase the tax on the forgiven debt with the principal residence excuse because that excuse expires on 12-31-2012.
Don't wait until 2013. Make your move now.
Business tax write-offs for new equipment will be limited by the lack of additional first year depreciation.
Buy equipment before the end of the year.
Taxpayers at upper income levels will experience a new Health Care Surtax on investment income and salaries over $250,000.
If possible, arrange year-end bonuses for 2012 payment.
Wage earners will see a 2 percent decrease in paychecks due to the expiration of the payroll tax holiday.
The US Government will get approximately $500 billion more in tax revenue.
Call your representatives in Congress. This is an election year. Make your opinion count.