Fiscal Cliff Deal: What it means for 2013 taxes!

As you probably already know, the House and Senate have passed a fiscal cliff deal which the President has said that he would sign.

Although in depth analysis is premature (the text of the Senate bill is 157 pages), some key figures are already known. This from the good folks at the Tax Foundation, much more in depth analysis can be found there. Check it out!

Particulars of the Deal from the Tax Foundation:

Income Tax Brackets:

"Retains the 10 percent, 15 percent, 25 percent, and 28 percent income tax brackets from the Bush tax cuts permanently

Retains the 33 percent and 35 percent income tax brackets from the Bush tax cuts for taxable income under $400,000 (single), $425,000 (head of household), and $450,000 (joint filers). Imposes 39.6 percent tax rate on income above this level."

Capital Gains & Dividend Tax:

"Capital gains tax and dividends tax will be 20 percent for taxpayers with income over $400,000 (single) and $450,000 (joint filers). This does not include the new 3.8 percent health care tax on investment income above $200,000 (single) and $250,000 (joint filers) in adjusted gross income, so the top rate for capital gains and dividends will be 23.8 percent. For lower income levels, the tax will be 0 percent, 15 percent, or 18.8 percent."

Estate & Gift Tax

"Raises estate and gift tax to 40 percent, but above the current exemption level (~$5.12 million) and adjusted for inflation in future years"

Alternative Minimum Tax

"Permanently sets Alternative Minimum Tax (AMT) exemption at $50,600 (single) and $78,750 (joint filers) for 2012 and adjusts for inflation thereafter"