fiscal-cliff

The expectation on increasing tax rates will likely only effect a few of us.  Thus far it seems anyone earning under $400k won’t generally be affected.

Dividends and capital gains rates are expected to be 15% for those earning under $400k and 20% over $400k.

Deductions seem they will remain the same for those earning under $400k and will be limited for those over $400k.

A new tax rate will be added at 39.6%

In short, most of the Bush tax cuts have been extended for earners under $400k and not for taxable income over $400k.

The scariest about this update, is that the spending has not been completely addressed yet.  They have only barely scratched the surface of that.  Put on your seat belts and get ready for the president to try to use power to override any voting powers.

Copyright © 2013 KRD Tax & Consulting, LLC.