Why Your Tax Bill Might Surge Next Year

[mfcorey1]

Major Individual Income Tax Benefits Expiring 12/31/2011:

• Personal tax credits applied against income tax no longer apply

• Higher alternative minimum tax exemptions revert back to extraordinarily-low thresholds

• $250 school teacher expense deduction ends

• Mortgage insurance premium deduction expires

• State and local sales tax deductions expire

• Tuition and related fees deduction end

• IRA to charity tax-free transfers stop

• 2% Social Security tax reduction ends

Major Individual Income Tax Benefits Expiring 12/31/2012:

• Marriage penalty equalization ends

• Dividends taxed at capital gains rates removed, taxed at regular rates now

• Capital gains low tax rates expires

• Removal of itemized deduction phase out for higher income Americans

• Removal of personal exemption phase out for higher income Americans

• Child care deduction limit of $3,000 reverts to $2,400

• Child credit reduces from $1,000 per child to $500 per child

• Low 10% tax bracket for low income Americans is eliminated

• Lower income tax rates and smaller brackets expires

• Refundable adoption credit and reduced deduction

• American Opportunity college education credit expires

• Major reduction in earned income credits and refunds

• Income tax exemption for debt forgiven on home foreclosures and repossessions

• Deduction for student loan interest ends

• Education IRA limit drops from $2,000 to $500

http://finance.yahoo.com/taxes/article/113757/higher-taxes-next-year-foxbiz?mod=taxes-advice_strategy

[canoeist52]

1. Foxbusiness news -IF congress continues....

"f Congress continues to do nothing to provide a long-term permanent set of tax laws"

[unblock]

2. "personal tax credits applied against income tax"? What is this one?

[GOTV]

3. If it forces US to pay the bills WE ran up... good!

[Fumesucker]

4. People earning under $20K *already* had a net tax increase while everyone else got a cut..

I bet this will accelerate that trend..

[GOTV]

5. Never the less, Bush tax cuts helped the rich more and their expiration will hurt them more ...

... I'd rather keep the tax cuts for the middle class but if the only way to raise revenues it to scrap the Bush tax cuts entirely I'm all for it.

[Fumesucker]

6. No they won't..

No wealthy person is going to miss a meal or lose their home because the tax cuts expire..

I bet more than a few non-wealthy will go hungry or get foreclose on because of this

[GOTV]

8. Well, if you think the Bush tax cuts helped the poor more, you're one of the few

[Fumesucker]

9. Heh, I'm one of the poor..

Jobless for nearly three years now and been on food stamps for two..

In fact the last tax deal actually *raised* net taxes on people making under $20K while giving massive tax cuts to the rich and a relative pittance to the middle class.

[ChoppinBroccoli]

7. Looking At That List...............

................how many people in the ACTUAL middle class or below is that going to affect? I can tell you that I'm pretty solidly in the middle class in terms of income, and only a couple of those apply to me, and the difference will be minimal.

Looks to me it's going to be mostly higher income people and people with more disposable income that are getting hit, and to that I say, it's about time.