Tag Archives: Tax bracket

Understanding The Fiscal Cliff Deal

The Fiscal Cliff Deal

The taxes paid by most Americans will definitely increase despite the fiscal cliff deal just signed by Congress.

President Obama has declared that the fiscal cliff deal as a victory for middle class households. This may not be true because taxes are bound to go up and this will lead to an increase in middle class taxes.

The percentage of households and individuals i...

The percentage of households and individuals in each income bracket. “US Census 2005 Economic Survey, income data” . . Retrieved 2006-12-09 . “US Census Bureau, personal income distribution” . . Retrieved 2006-12-09 . (Photo credit: Wikipedia)

America also has a huge national debt of $16 trillion. The tax relief and pork included in the new deal will add about $4 trillion to the national debt over 10 years. The fiscal cliff deal has been hailed as a victory for the middle class but this deal means that about 77% of the American population will pay more federal taxes in 2013. There are bound to be tax increases in 2013 and this affect the people in the middle classes too.

This may seem pretty high but people in high income brackets will pay much more than this in 2013.
The new deal will definitely affect people in the $400,000-$450,000 income bracket.

For those in the top income bracket, investment taxes will increase from 15% to 20%. Another category of top income earners will experience an increase of 4.6% in the taxes they already pay. This means that the tax will move up from 35% to 39.6%.

The Obama 2010 health care law necessitated a higher amount of tax for families which earn high incomes. In 2013, households with incomes in the $500,000 and $1 million bracket will pay $14,812 more. Families making more than $1million per year will fork out $170,341 in federal taxes.

The new tax deal was passed into law on January 1, 2013. The aim is to get more money for social security which is financed by taxes paid by employees and employers of labor. The fiscal cliff deal was opposed initially by republicans but the law has now been passed into law.

Tax Carnival Ecstasy – February 7, 2012

Welcome to the February 7, 2012 edition of Tax Carnival Ecstasy. In this issue we have an article by Gregory Stokes on not Missing The Tax Credits Income Deadline. Mark Roberts takes a look at How To Choose The Right Filing Status. Plus there’s a post on  Making 401k Withdrawals by Roger White. Hope you enjoy the articles, share, bookmark, tweet, like on Facebook, and come back real soon.

DeWitt Dudley presents My Mom Is Dying: What Should I Do About Estate Tax? | Law Offices of Givner & Kaye posted at Law Offices of Givner & Kaye, saying, “We get the call all too often: “My mom (or dad) is dying: what should I do?” Of course, if they are calling us, what they really mean is “what should I do to reduce the potential estate tax?””

credits

Gregory Stokes presents Don’t Miss The Tax Credits Income Deadline posted atTax Credit Calculator, saying, “The deadline for income tax credits is January 31st. If you don’t provide your actual income figure by this time you could get the wrong amount of tax credits and have to pay a penalty.”

filing

Mark Roberts presents How To Choose The Right Filing Status posted at Tax Brackets, saying, “This blog post looks at how to choose the correct filing status for your situation.”

tax law

M K Karn presents House Rent Allowance – Income Tax Provisions posted at Central Government Employee News & Tools, saying, “Indian Tax Law”

Steve presents Four Structured Settlement Questions and Answers – 2008 Taxes – Free Tax Filing Options posted at 2008 Taxes, saying, “If you have recently come into a large sum of money, you may want to think about setting up a structured settlement instead of receiving a lump sum.”

taxes

Jessica Bird presents Taxing Your Car posted at CarTaxBands.org, saying, “If you need to pay tax on your car, this blog post will outline three important documents that you will need.”

Steve presents Options for Investing for Your Retirement – 2009 Taxes – Free Tax Filing Options posted at 2009 Taxes, saying, “Many people get nervous when it comes to thinking about retirement investing. It can be a very confusing process with complicated terms and options available.”

 

tips

Roger White presents Making 401k Withdrawals posted at 401k Calculator, saying, “If you are thinking about making a 401k withdrawal, you should consider the choice very carefully. This blog post highlights some of the risks of making a withdrawal.”

DeWitt Dudley presents The Top Five Asset Protection Strategies For The Owners Of A Closely Held Business | Law Offices of Givner & Kaye posted at Law Offices of Givner & Kaye, saying, “The owners of a closely held business that is operated as an “S” corporation may be the targets of lawsuits that will drain their insurance policies, that may even exceed the limits of their insurance policies and that may cause them sleepless nights. What steps should these business owners take so that if something goes wrong, they will not lose all or most of the assets that they have worked so long to accumulate?”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

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