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The IRS has set many tax deductions and benefits in their place for taxpayers. Unfortunately, some taxpayers who earn a advanced level of income can see these benefits phased out as their income increases.
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Congress finally acted on New Year's Day, passing the "fiscal cliff" rules. This law extended the existing tax rate structure for single taxpayers with taxable income of as compared to USD 400,000, and married taxpayers with taxable income of less than USD 450,000. For along with higher incomes, the top tax rate was increased to 39.6% These limits are determined ahead of foreign earned income exception to this rule.
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