Key Amendments
Key Amendments
The American Taxpayer Relief Act of 2012, effective from January 1, 2013, brought significant changes to the tax landscape. As candidates gear up for the 2013 Enrolled Agent (EA) exam, understanding these amendments is crucial.
Individual Tax Changes
For those earning under $400,000 annually ($450,000 joint filers), tax brackets remained stable. However, incomes over $400,000 faced a new 39.6% tax bracket. Dividend and capital gains taxes were affected, with a 20% rate for higher earners. Social security payroll tax for employees increased to 6.2%.
Exemptions and Credits
The act made the Alternative Minimum Tax (AMT) exemption permanent, providing relief for many taxpayers. Personal exemptions and limitations on itemized deductions were reinstated for higher-income individuals. Various deductions and credits, including state/local sales tax and child tax credit, were extended.
Business Implications
Several business-related provisions were extended, ensuring continuity. Notable measures include the Work Opportunity Tax Credit, Section 179 depreciation deduction of $500,000, and bonus depreciation of 50%. These provisions provide stability for businesses navigating the evolving tax landscape.
The American Taxpayer Relief Act of 2012, effective from January 1, 2013, brought significant changes to the tax landscape. As candidates gear up for the 2013 Enrolled Agent (EA) exam, understanding these amendments is crucial.x
Individual Tax Changes
For those earning under $400,000 annually ($450,000 joint filers), tax brackets remained stable. However, incomes over $400,000 faced a new 39.6% tax bracket. Dividend and capital gains taxes were affected, with a 20% rate for higher earners. Social security payroll tax for employees increased to 6.2%.
Exemptions and Credits
Embarking on your journey to become an Enrolled Agent requires a strategic approach. Learn about the resources and study materials tailored for the new exam format. Gain insights into recommended study strategies, practice resources, and expert tips that align with the latest exam requirements. Empower yourself with the knowledge needed to navigate the exam confidently and emerge successful.
Business Implications
Several business-related provisions were extended, ensuring continuity. Notable measures include the Work Opportunity Tax Credit, Section 179 depreciation deduction of $500,000, and bonus depreciation of 50%. These provisions provide stability for businesses navigating the evolving tax landscape.
