"Finally, finally, finally after months, years of bickering, we have a tax bill," tax expert Rick Wolfish said.
Wolfish has read the bill.
"The bad news, Gina, is everyone's tax is going up. But the good news is that it's going up a fraction of what they would have gone up if the fiscal cliff had hit us all," he said.
Wolfish says the main change hitting your wallet is that the payroll tax break ends. Effective immediately everyone will pay 2 percent more of their paycheck to Social Security.
"For every $50,000 that you make, your taxes will go up $1,000 per year," Wolfish said.
Also impacted-- single people making more than $250,000 and married couples making over $300,000. They will see itemized deductions and exemptions like property taxes, kids, the Vermont income tax and charitable donations phased out.
"Up to 80 percent of your itemized deductions can be phased out," Wolfish said.
Single people making more than $300,000 and married couples making over $450,000 will see the biggest impact, says Wolfish. In addition to deductions being phased out, tax rates will rise almost 5 percent to 39.6 percent. And long-term capital gains and dividends like stock will now be taxed 5 percent more at 20 percent.
Estate taxes are also rising. The first $5 million in inheritance is still exempt, but after that the tax rate goes up 5 percent to 40 percent.
"It's called the 179 deduction, not to be the code section quoter," Wolfish said.
And finally business owners can now write off $500,000 of fixed assets like furniture, machinery and computers each year. And they can write off 50 percent of that cost if it's bought new.
"Baboom! You could write it off in year one. So, hopefully companies will purchase more fixed assets. It will create jobs," Wolfish said.
Wolfish says not going over the cliff averted many drastic changes and automatic spending cuts, saving some tax breaks that were at risk. For example, parents can still get a $2,500 tax break for every kid in college.
"No political party or the president got what they wanted, but they came together and made a plan," Wolfish said.
People can usually start filing their taxes Jan. 1, but the IRS says filling is delayed as officials review the new law. It's not sure yet when the tax filing season will start or the impact this delay will have on processing of any refunds people might have coming to them.
Friday, May 24 2013 11:30 PM EDT2013-05-25 03:30:10 GMT
A hole in the road closed one of the routes into Canada Friday.State Police say Route 5 in Derby Line is closed near Caswell Avenue because of a hole in the pavement just a couple of feet over the lineMore >>
A hole in the road closed one of the routes into Canada Friday.More >>
Friday, May 24 2013 7:17 PM EDT2013-05-24 23:17:06 GMT
It was a storm that left residents with more damage than they could have ever imagined. "The basement has about 13 inches of water," said Bob Genter of Underhill. And preparing for the aftermath of theMore >>
Flash floods left destruction across the region. And the rain is not over. Heavy downpours left some people trapped in their neighborhoods as emergency crews work to try to clear the roads.More >>
Friday, May 24 2013 7:54 PM EDT2013-05-24 23:54:18 GMT
Vermont State Police say the following roads have been closed due to flooding:UNDERHILL: VERMONT ROUTE 15, CILLEYHILL POKER HILL ROAD NORTH UNDERHILL STATION ROAD PAIGE ROAD DAUDLIN ROAD BROWNS TRACE,More >>
Friday, May 24 2013 7:20 PM EDT2013-05-24 23:20:50 GMT
As the cleanup gets underway from Thursday night's flash flooding, the focus shifts now to the broader impacts of rising rivers from around the region. All the rain so far and more to come is running intoMore >>
All the rain is running into larger streams and rivers that are moving rapidly toward flood stage.More >>
Friday, May 24 2013 12:44 PM EDT2013-05-24 16:44:50 GMT
Heavy rains have caused more flooding problems around our region, and the situation could get worse as the rain continues to fall over the holiday weekend. So far, the impact has mainly been seen in roadMore >>
Heavy rains have caused more flooding problems around our region, and the situation could get worse as the rain continues to fall over the holiday weekend.More >>
Friday, May 24 2013 9:51 AM EDT2013-05-24 13:51:55 GMT
Over the river and throught the woods isn't just the way to grandma's house, its the way a lot of people are having to travel just to make it to their front door. Dormant brooks and sleepy streams turnedMore >>
Strong rains Thursday flooded roads in Essex.More >>
Friday, May 24 2013 7:25 PM EDT2013-05-24 23:25:14 GMT
A rainy Vermont City Marathon forecast isn't slowing down runners or organizers. "Well, we're going to make some liquid sunshine out of all of this rain. That's the only choice we've got right now," saidMore >>
The countdown is on to this weekend's Vermont City Marathon and final preps are underway. Those finishing touches are coming in the rain, but organizers say the weather isn't slowing things down.More >>
Friday, May 24 2013 7:35 PM EDT2013-05-24 23:35:15 GMT
The bad weather has forced the postponement of the annual Memorial Day parade in Essex. The parade is held annually on the Saturday morning of the holiday weekend. But after all the rain and flooding damageMore >>
The bad weather has forced the postponement of the annual Memorial Day parade in Essex.More >>