An eleventh-hour compromise in Congress pulled the nation back from the brink of the fiscal cliff—at least for the time being—just after we had slipped over the edge. Now the “American Taxpayer Relief Act” is the law of the land. For the most part, this sweeping legislation preserves and extends existing tax breaks—on a permanent basis in some cases—but also imposes higher taxes on upper-income individuals. Here’s a roundup of 16 key tax-saving opportunities in the new law.
1. Sidestep higher income taxes. The new law wipes out across-the-board individual tax rate increases slated for 2013. Instead of making wholesale changes, the new law retains the prior income tax rate structure for most individual taxpayers—permanently. However, a top rate of 39.6% is added for single filers with taxable income above $400,000 and joint filers with taxable income above $450,000.
Tip: When possible, use tax strategies throughout t...(register to read more)