Tax Breaks and Increases Explained

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SPARKS, NV -- Jackson-Hewitt Tax Service in Sparks was updating its tax tables Tuesday after lawmakers approved 'fiscal cliff' legislation.

"We never know what's going to happen until they give us the rule book," Lorraine Braun of Jackson-Hewitt said.

The bill aims to resolve problems that may have resulted in your 2012 return or refund being delayed.

The bill also extends many tax credits in 2013. However, most Americans will see a tax increase in the new year.

A break you have been receiving on social security taxes goes away. The Associated Press stated the nonpartisan Tax Policy Center estimates households making forty-thousand to fifty-thousand dollars a year will see an increase of $579.

However, the deal avoids a steeper tax hike for most tax-payers by extending Bush-era tax breaks.

Braun said higher income earners will see the Bush tax breaks go away. "People who make over four-hundred-fifty-thousand dollars as a married couple, their tax rate is going to increase from 35 to 39.6 percent," Braun said.

The deal extends the act that gives underwater home-owners unloading their homes a break on the taxes owed on forgiven debt.

Twenty-five thousand Nevadans who are long-term unemployed will also see federal benefits continue.