Year-end actions may minimize the impact of tax rate increases

HRS Insight

While year-end tax planning is usually a routine annual task, this year the process is hardly routine with the impending ‘fiscal cliff’ that the United States may ‘walk-off’ on January 1, 2013. Without an agreement between Congress and President Obama on extending some or all of the current tax rates, individual taxpayers will face higher taxes in 2013 on compensation and investment earnings. Employers and employees can take steps before year-end to minimize the impact of the higher tax rates.

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