What The Tax Deal Means For You

This article by Susie Poppick originally appeared in Money Magazine and quoted Paul Herman as a Subject Matter Expert on tax preparation. The original article can be found online here.

white-plains-cpa-firm-westchester-accounting-firm-paperwork-for-tax-filingAfter much nail biting, the fiscal cliff deal has finally brought certainty to the federal tax landscape, and for most the news is good.

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 …

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