The Fiscal Cliff is everywhere in the media right now, and the reality is that the inaction of Congress and the President is finally coming to a head.  This cliff has been on the horizon for the last 2 years, since the legislation to extend the "Bush tax cuts" was last passed.   If the cuts are allowed to sunset, the effect will be felt by people in all income levels, not just those with large capital gains or dividend income.  A couple key points that impact the middle class:

1.  The child tax credit, which now is $1,000 per child under the age of 17, will become $500 next year

2.  The 10% tax bracket will be gone, which increases everyone's income tax on the first $56,000 of taxable income MFJ, $22,500 Single.

AuthorTasha Chambers