Tax specialists also advise you to take note of certain retroactive changes that could affect your 2012 taxes:

Alternative Minimum Tax. The AMT standard exemption jumps to $50,600 from $33,750 for individuals and to $78,750 from $56,600 for married couples. The recently enacted tax deal also indexes the AMT threshold to inflation.

American Opportunity Tax Credit. This credit up to $2,500 for expenses incurred during the first four years of college was reinstated for 2012 through 2015.

Child tax credit. A $1,000 credit for dependent children under 17 was due to be cut to $500 in 2012, but the new law keeps it at $1,000 for 2012 returns.

For more information please visit my estate planning website.

Philip J. Kavesh
Nationally recognized attorney helping clients with customized estate planning guidance for over 40 years.
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