Summary -

President Obama on January 2, 2013 signed into law the American Taxpayer Relief Act of 2012 (the “Act”). The Act extends certain tax rates, tax credits, and other provisions previously enacted by other tax legislation, which were generally scheduled to expire after 2012.

The Act:

- extends the 2012 individual income tax rates for individual filers with taxable income up to $400,000, and for married couples filing jointly with taxable income up to $450,000 (the “400/450 Threshold”);

- raises the top individual tax rate on taxpayers earning above the 400/450 Threshold to 39.6% (up from 35%);

- extends the 2012 individual income tax rates on long-term capital gains and qualified dividends for taxpayers earning up to the 400/450 Threshold. These rates are generally 15%...

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Topics:  Alternative Minimum Tax, American Taxpayer Relief Act, Business Taxes, Capital Gains, Charitable Donations, Child Tax Credit, Dependent Care, Dividends, Educational Assistance Programs, Energy-Efficiency Tax Credits, Estate Tax, FIRPTA, Fiscal Cliff, Foreign Corporations, Generation-Skipping Transfer, Gift-Tax Exemption, Income Taxes, Itemized Deductions, Medicare Taxes, Mortgage Insurance Deduction, Payroll Taxes, Production Tax Credit, Qualified Small Business Stock, RICs, Roth Conversions, Tax Rates, Withholding Tax

Published In: Elections & Politics Updates, Finance & Banking Updates, Labor & Employment Updates, Tax Updates, Wills, Trusts, & Estate Planning Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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