To understand the significance of the problem, Mr. Fowler explained some of the significant expiring provisions:
• Tax Rates Bracket will Increase - The lowest bracket (which was at 10%) will now increase to 15%. The top four brackets at 25%, 28%, 33% and 35% will go up to 28%, 31%, 36% and 39.6%. This will be a tax increase for all taxpayers.
• The 2011-2012 Payroll Tax Cuts Expire - This means that for the upcoming tax year, payroll taxes will increase by 2% on earned income up to $113,700.
• Lower-Income Taxpayers Lose Benefits - The most significant will be changes to the Child Tax Credit which will be reduced by half ($1000 to $500).
• "Obamacare" Taxes Kick In! - Here are two of the biggest changes for 2013.
1. Medical Device Tax - A $20 billion tax increase that will increase the cost of your healthcare for things like prosthetic devices to cardiac pacemakers.
2. Taxpayers are currently allowed to deduct medical expenses on their 1040 form to the extent that the costs exceed 7.5 percent of one's adjusted gross income. Obamacare will raise that threshold to 10 percent, meaning a higher tax bill.
Mr. Fowler said, “The fiscal cliff uncertainty is causing Americans out of fear, to not purchase things like homes and cars. This is unacceptable and our leaders need to protect the taxpayers. Whenever you have something financial that has the word cliff in it, you must make decisions to avoid going off of it.”
"One question I have is…how far is the fall from the cliff going to be?” he continued.
Because of his expertise and contributions to his profession, Barry Fowler was featured as one of America's PremierExperts®
About Barry Fowler:
Barry Fowler is licensed to represent taxpayers before the Internal Revenue Service (IRS) and is a longstanding member of several tax industry professional organizations including the National Association of Enrolled Agents (NAEA), National Association of Tax Preparers (NATP), Texas Society of Enrolled Agents (TSEA), and the American Society of Tax Problem Solvers (ASTPS). With experience in the tax and finance industry spanning over twenty years, Fowler’s expertise includes tax resolution, personal financial planning, tax return preparation, financial statements, and general ledger bookkeeping. He has been instrumental in helping hundreds of people resolve complex tax issues with the IRS.
Fowler’s Taxation Solutions, Inc. reaches out to people throughout the entire United States. With a genuine concern for the IRS issues his clients face, he states, “We are here to help them (clients) fight the IRS. We are experts in this industry and our knowledge surpasses most tax firms. We will do what we say we will do. We do not give our clients empty promises and we stand behind the promises we make. We look at each case objectively and honestly convey to our clients their best options. We have been highly successful in exceeding our clients’ expectations.”