The House approved a Senate bill and our country has avoided the dreaded “fiscal cliff”. As anticipated the vote, held Tuesday evening, fell along partisan lines, but how does this affect you or your family in 2013?
The following items are key concerns to most Americans:
- Income taxes for Americans earning less than $400,000 (joint filers earning less than $450,000) will NOT go up. “Bush-era” tax cuts are staying.
- Payroll Tax for Social Security is INCREASING back 6.2% from 4.2%. For every $30,000 earned anticipate taking home $50 less per month (approximately $600 per year).
- Unemployment has been EXTENDED for a year.
- Child Tax Credit has been EXTENDED.
- Research and Development Tax Credit EXTENDED.
- Tuition Tax Credit EXTENDED.
- Estate Tax change…It will no longer exist on estates up to $5 million dollars, but any estate over $5 million dollars goes UP from 35% to 40%.
- “Dairy Cliff” – was set to expire. This was EXTENDED and will prevent the cost of a gallon of milk from doubling to over $7.00 a gallon.
By signing this bill, we have avoided going over the “fiscal cliff”. The Congressional Budget Office has noted that this bill will add to our national debt by about $4 trillion dollars over the next ten years. Negotiations about spending cuts will certainly have to continue. www.cbo.gov/
Contact one of the Jupiter, North Palm Beach, or Stuart area real estate specialists at Waterfront Properties and Club Communities at (561)746-7272 to discuss these changes and how they may or may not affect your buying or selling plans.