Tackling the American Taxpayer Relief Act of 2012 in 5 Easy Steps!

Our friends over at Ed Slott’s website www.irahelp.com sent us a really great little one sheet last week and we wanted to share it with you!  Ed Slott is one of our favorite radio guests and one of the top IRA experts in the country.  We’ll break up the information for you over the next few days, and we hope you find it as useful as we did!

What is the American Taxpayer Relief Act of 2012?

This act addresses the expiration of certain tax provisions centered around what are called the Bush-era tax cuts. It tackles the tax revenue side of a Congressional deficit reduction plan, was passed by the United States Congress on January 1, 2013, and was signed into law by President Barack Obama on January 2, 2013.

Step #1: Understand the IMPACT of income tax law changes.

Roughly 98% of Americans will not be impacted by changes to the income tax brackets. However, individuals who file as single and make over $400,000/year or married filing jointly that make over $450,000/year will pay a 39.6% income tax rate.

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