Thursday, January 3, 2013

Fiscal Cliff deal approved! What does this mean for us ?

 Fiscal Cliff Deal  breakdown

 -We will pay  6.2 percent out of payroll checks towards social security instead of 4.2 percent, payroll tax holiday is over

- Income Taxes will only rise on individuals making over $400, 000 and couples making over $450,000 a year, will increase from 35% to 39.6%.

- Investment tax income increased to 20% for those who make over $400,000 a year

-Emergency unemployment compensation extended for a year

-American Opportunity Credit extended for 5 years

-Earned Income Credit extended for 5 years

-Child Tax Credit of $1000 extended for 5 years

-Mortgage Debt Forgiveness extended for another year. So if you are forced into a short sale or foreclosure, you do not have to pay taxes on the amount of loan forgiven.

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