Congress Approves The American Taxpayer Relief Act Of 2012, Preventing "Fiscal Cliff"

After much contention,Congress passed the American Taxpayer Relief Act of 2012, and President Obama signed the legislation on January 2, 2013. The Act avoids automatic sunset provisions that were scheduled to take effect beginning 2013 under the so-called “Bush-era tax cuts.” Though the Act is nowhere as comprehensive as what many lawmakers envisioned, there are positive aspects for a majority of taxpayers. The summary below highlights key provisions from the Act.

The Act makes permanent the lower Bush-era income tax rates for all taxpayers with taxable income at or below certain thresholds — $400,000 for single filers, $450,000 for joint filers, and $425,000 for heads of household. Individual marginal tax rates of 10, 15, 25, 28, 33, and 35 percent at the end of 2012 will remain the same, but there will be an additional 39.6 percent bracket for income exceeding the threshold amounts listed above.

In This Issue:

- Major Tax Provisions Affecting Individuals

- Major Tax Provisions Affecting Businesses

- Federal Estate, Gift, and Generation-Skipping Taxes

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

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.

© Polsinelli | Attorney Advertising

Written by:


Polsinelli on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.