Taxes on capital gains and dividend income exceeding $400,000/$450,000 (single/joint) increase from 15-20% Also, the 3.8% tax on capital gains and dividends is in addition to this increase (as required by the Affordable Care Act).
Every tax payer will see a little less each month in their paycheck (on average, employees making between $40,000 – $50,000 will see $579 less this year; $50,000 – $75,000, $822 less).
Form 1099 is required in a variety of ways, but of most importance is requirements to send 1099s to non-corporation service providers. This requirement if for any service over $600 in a given year. For more information on this requirement visit the Third Party Reporting Center on the IRS website.
For individual estates, the first $5 million in value is exempt, and $10 million for family estates, everything beyond that is taxed at 40% (up from 35%).
Small Business Expensing
A one-year extension on bonus depreciation rates and Section 179 will allow businesses to invest in equipment and software.
Alternative Minimum Tax (AMT)
This is a permanent fix, which saves most taxpayers roughly $3,000 in additional taxes for 2013 and beyond. It is also now indexed for inflation so the same issue does not occur in the future. The new exemptions are now $50,600 single and $78,750 married and indexes the exemption and phase-out amounts. Please note the new AMT rate is for tax years beginning after December 31, 2011 – i.e. the 2012 tax year.