Tag Archives: The fiscal cliff and its impact on seniors

At 2 a.m. on Jan. 1, 2013, the Senate overwhelmingly passed a compromise bill, called the American Taxpayer Relief Act of 2012, and narrowly averted the fiscal cliff. But what does that mean for seniors? Consider the following: 1. Tax rate changes — The bill permanently extended current tax rates for individuals earning less than $400,000 and couples earning less than 450,000. Wealthy taxpayers earning $400,000 or more will revert back to a 39.6 percent tax rate (up from 35 percent). Taxpayers in this category will also see an increase in their capital gains tax rate and dividend tax rate …