2012 American Taxpayer Relief Act — Overview

After weeks, indeed months, of proposals and counter-proposals, seemingly endless negotiations and down-to-the-wire drama, Congress passed legislation to avert the tax side of the so-called “fiscal cliff.” The American Taxpayer Relief Act permanently extends the Bush-era tax cuts for lower- and moderate-income taxpayers, permanently “patches” the alternative minimum tax (AMT), provides for a permanent 40% federal estate tax rate, renews many individual, business and energy tax extenders, and more. In one immediately noticeable effect, the American Taxpayer Relief Act does not extend the 2012 employee-side payroll tax holiday.

The American Taxpayer Relief Act is intended to bring some certainty to … Read the rest

What’s New for 2013

We are well into 2013, and a host of tax changes kick in this year. Here’s a quick rundown of the most important things that have changed along with reminders about longstanding tax breaks that were extended through this year.

Changes Taking Effect in 2013

Payroll Tax Holiday Is Gone — For 2011 and 2012, the Social Security tax withholding rate on your salary was temporarily reduced by 2%, from the normal 6.2% to 4.2%. If you’re self-employed, the Social Security tax component of the self-employment tax was reduced by 2%, from the normal 12.4% to 10.4%. However, the payroll … Read the rest

Stimulus Act Accompanies Tax Changes

Tax law changes from the Stimulus Act could affect how you file in April.

On February 17, 2009 the American Recovery and Re investment Act (ARRA) of 2009 (the Stimulus Act) was signed into law by President Obama. The law was designed to get money into the hands of taxpayers to help stimulate the floundering economy. Time will tell whether it is the catalyst the politicians hoped it would be.

However, there are some potential tax savings for small- to medium-sized business owners, both on an individual and business level, that could help out as April approaches. While reviewing your … Read the rest