On Jan. 2, 2013, President Barack Obama signed into law a massive tax package designed to help avert the fiscal cliff. Titled the American Taxpayer Relief Act of 2012 (H.R. 8), it makes sweeping changes to income, employment, and estate and gift taxes. These are too numerous to cover properly here, so only selected items will be explained now.
Overview
Some tax rules have been made permanent, while others are extended for one, two, or five years. Overall, the act is touted as a tax cut because the 10-year revenue effect is nearly a loss of $4 trillion. However, looking deeper into the act, many taxpayers may find they are paying more. Key changes that were (or were not) made by the act include:
