New Tax Laws For 2012

Congress has passed laws regarding health care and housing bills. They have also included new tax laws for 2012 that might be good news to taxpayers. Some of the new tax laws for 2012 include the Social Security tax reduction rate which is 4.2 percent for employees who have a Social Security wage limit of $110,100 and 10.4 percent for self-employed individuals. The amount for alternative tax exemption will decrease and some non-refundable personal credits will no longer apply to offset the AMT. The new tax laws for 2012 also include expiry of high impact tax benefits, such as deductions in the expenses for teachers and mortgage insurance premiums, tuition fee deductions, work opportunity credit, deduction for state and local sales tax, plug-in conversion credit, and many more. Another important change is under Section179 deduction which is reduced from $500,000 to $139,000 with a new phase-out threshold limit of $560,000.