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New CCH Tax Briefing Examines American Taxpayer Relief Act

          New CCH Tax Briefing Examines American Taxpayer Relief Act

PR Newswire

RIVERWOODS, Ill., Jan. 2, 2013

RIVERWOODS, Ill., Jan. 2, 2013 /PRNewswire/ -- With the tax side of the fiscal
cliff narrowly averted, CCH has issued a new Tax Briefing: American Taxpayer
Relief Act, covering provisions of the new legislation.

The American Taxpayer Relief Act allows the Bush-era tax rates to sunset after
2012 for individuals with incomes over $400,000 and families with incomes over
$450,000; permanently "patches" the alternative minimum tax (AMT); revives
many now-expired tax extenders, including the research tax credit and the
American Opportunity Tax Credit; and provides for a maximum estate tax of 40
percent with a $5 million exclusion. The Act also delays the mandatory
across-the-board spending cuts known as sequestration. President Obama said
that he will sign this legislation as soon as it reaches his desk.

Individuals with incomes above the $450,000/$400,000 thresholds will pay more
in taxes in 2013 because of a higher 39.6-percent income tax rate and a 20
percent maximum capital gains tax. And, all taxpayers will find less in their
paycheck in 2013 because of what the American Taxpayer Relief Act did not
include: the new law effectively raises taxes for all wage earners (and those
self-employed) by not extending the 2012 payroll tax holiday that had reduced
OASDI taxes from 6.2 percent to 4.2 percent on earned income up to the Social
Security wage base ($113,700 for 2013).

"The American Taxpayer Relief Act is nowhere close to the grand bargain once
envisioned by the President and many lawmakers, but it's a major plus for
taxpayers that the 2001 and 2003 tax act changes have finally been made
permanent after years of uncertainty," said CCH Principal Federal Tax Analyst,
Mark Luscombe, JD, LLM, CPA. "Effectively, it's a stop-gap measure to prevent
the onus of the expiration of the Bush-era tax cuts from falling on middle
income taxpayers. Congress must still address sequestration. And, Congress is
likely to revisit tax policy and spending cuts when it tackles the expected
increase on the nation's debt limit in February."

CCH's Tax Briefing: American Taxpayer Relief Act is available by clicking
here. Visit CCHGroup.com/Legislationto access the full range of CCHTax
Briefingson significant tax developments. Members of the press interested in
speaking to a CCH tax analyst should contact Eric Scott at 847-267-2179,
eric.scott@wolterskluwer.com or Brenda Au at 847-267-2046,
brenda.au@wolterskluwer.com.

About CCH, a Wolters Kluwer business

CCH, a Wolters Kluwer business (CCHGroup.com) is a leading global provider of
tax, accounting and audit information, software and services. It has served
tax, accounting and business professionals since 1913. Among its
market-leading solutions are The ProSystem fx^® Suite, CorpSystem^®, CCH^®
IntelliConnect^®, Accounting Research Manager^® and the U.S. Master Tax
Guide^®. CCH is based in Riverwoods, Ill. Follow us now on Twitter
@CCHMediaHelp. Wolters Kluwer (www.wolterskluwer.com) is a market-leading
global information services company. Wolters Kluwer is headquartered in Alphen
aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam
(WKL) and are included in the AEX and Euronext 100 indices.

SOURCE CCH, a Wolters Kluwer business

Website: http://www.CCHGroup.com
Contact: Eric Scott, +1-847-267-2179, eric.scott@wolterskluwer.com, or Brenda
Au, +1-847-267-2046, brenda.au@wolterskluwer.com