Congress, as part of their New Year’s party, passed a series of tax provisions that, while mostly extended the “Bush era” tax cuts and a few other business-friendly tax benefits, put an unhealthy hit on upper income taxpayers. One notable item was the so-called Alternative Minimum Tax “patch” was made permanent thus avoiding its reach to income levels as low as $33,750. The return of tax rates that would impose a “marriage penalty” was also fixed.
But now what…? The tax can has been kicked down the road by the debt ceiling until May…so stay tuned.
Read more about the new tax provisions.