What Fiscal Cliff tax changes mean for you | News

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What Fiscal Cliff tax changes mean for you
News

JACKSONVILLE, Fla. -- Tax preparers are waiting to
see what will happen now that there's no fiscal cliff. Is the IRS geared
up? Until now everything has been on pause. Here's what it means to you
individually:

-Tax rates will go up from 35-39.6 percent for incomes over $400,000

-Tuition tax credit extended for five years

-Social Security payroll tax restored or increased 2 percent

Steve Thompson has been watching the Fiscal Cliff debate and waiting to see how he will be affected. 

"I'd like to get to the top of the mountain," said Thompson.

Thompson has been in business 17 years and said some days, it is like climbing a mountain.

"It has been a roller coaster ride," he said. "Anybody who goes into business for themselves, I will say it is an adventure."

Thompson has two employees to run his Sand Dollar cleaners, one full
time, the other part time. He said it has been a struggle for a number
of reasons to keep things turning.

"We're just keeping things close to the vest right now," said
Thompson. "We're not looking at expanding any as far as equipment
purchases or anything like that because we really don't know."

Taxes are among his major concern, a common concern with small business owners.

"It is something we have to look at. It is a significant cost of doing business," said Thompson.

Thompson said this year, he will rely more on a professional tax consultant to get him through this tax filing season.

"I'm going to rely more on experts than in the past because I think there is more uncertainty," he said.

Ed Jackson, a small business owner and a tax preparer, has been
assessing the changes. He said businesses will benefit from the fiscal
cliff tax changes.

"Businesses got a break, they have the earlier depreciation, called
bonus depreciation," said Jackson. "The wind energy credit, as well as
several other business credits, were extended so everybody got something
out of the deal."

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