Even the tax increases that slipped through — a jump in the top rate from 35% to 39.6% and a hike in the capital gains tax from 15% to 20% — kick in only on incomes over $400,000 for singles, $450,000 for married couples filing jointly, not the $200,000 and $250,000 cutoffs President Obama had called for.
“The tax bill is a net positive for average Americans,” says White Plains, NY CPA Paul Herman.
Related: fiscal cliff deal raises taxes on 77% of Americans
Look past the headlines, though, and you’ll find a mixed bag: new rules that could help you in the years ahead, depending upon who you are, but higher taxes for a bigger group than you might expect.
Here are the most important changes you need to know about, and your best moves now.
A BIGGER BILL FOR TOP EARNERS
A lower threshold for tax pain. Just because you’re bringing in less than $400,000 a year, you’re not out of the woods.
By limiting two important ways to cut your taxable income, read more …