Veniskey breaks down fiscal cliff deal
By: Mark Gruba
Updated: January 7, 2013
David Veniskey, CPA with EFP Rotenberg, LLP discussed the impact of the fiscal cliff compromise Monday morning on News 8 at Sunrise.
Veniskey said the compromise will preserve lower tax rates for most taxpayers. Individuals making more than $400,000 or couples filing jointly with income over $450,000 will see a rate increase. "For the average taxpayer, they're not going to see much of a difference from 2012," he said.
Veniskey said the big impact to wage earners and those who are self-employed will be a 2 percent increase in payroll taxes. He also noted the deal makes the Alternative Minimum Tax permanent and extends the American Opportunity Credit for college tuition through 2017. In addition, he said filers will continue to enjoy deductions for mortgage interest.
The timing of the legislation offers some uncertainty about the processing of 2012 tax returns. Veniskey said it's too early to tell if there will be delays, but some filers could see expected refunds delayed by a few weeks. "The IRS's official position is, we'll let you know," he said.
Veniskey also said wealthy investors, those filing jointly making over $450,000 a year, will now pay a higher tax rate of 20 percent for capital gains and dividends.
Veniskey said the compromise will preserve lower tax rates for most taxpayers. Individuals making more than $400,000 or couples filing jointly with income over $450,000 will see a rate increase. "For the average taxpayer, they're not going to see much of a difference from 2012," he said.
Veniskey said the big impact to wage earners and those who are self-employed will be a 2 percent increase in payroll taxes. He also noted the deal makes the Alternative Minimum Tax permanent and extends the American Opportunity Credit for college tuition through 2017. In addition, he said filers will continue to enjoy deductions for mortgage interest.
The timing of the legislation offers some uncertainty about the processing of 2012 tax returns. Veniskey said it's too early to tell if there will be delays, but some filers could see expected refunds delayed by a few weeks. "The IRS's official position is, we'll let you know," he said.
Veniskey also said wealthy investors, those filing jointly making over $450,000 a year, will now pay a higher tax rate of 20 percent for capital gains and dividends.
