Besides the Bush tax cuts getting stretched another two years, the proposed new Obama-GOP tax deal has other goodies in the bag for you.
- Unemployment benefits get extended for another 13 months.
- The Alternative Minimum Tax (AMT) threshold got raised to $33,750, or $45,000 for married folks filing jointly.
- Payroll tax for workers get cut from 6.2% to 4.2%
- The Full Child Tax Credit will remain at $1,000 per child and won’t drop to $500 as planned.
In addition, if you thought your taxes rates were going to go up and so you planned on delaying deductions, contributions, or bonuses, it’s fine to take them before the end of the year like normal.
The new package has not yet gotten signed into law but when it does, it is likely to closely resemble the current proposal.
For more nitty gritty, check out “What the Tax Deal Means for You” on NYT Bucks Blog.
With tax deal in sight, it’s time for year-end planning [Prism Money]