Higher-income Americans and some legally married same-sex couples are likely to feel the biggest hits from tax law changes when they file their returns in the next month or two. Taxpayers also will have a harder time taking medical deductions this year.
Housing is rebounding. Families are shrinking debts. Europe has avoided a financial crackup. And the fiscal cliff deal has removed the most urgent threat to the U.S. economy. So why don't economists foresee stronger growth and hiring in 2013? Part of the answer is what Congress' agreement did and didn't do.
A last-minute surge in spending may have saved Christmas for stores. Major retailers such as Costco and Nordstrom report better-than-expected revenue in December. That comes as a relief for stores that can make up to 40 percent of their annual revenue during the winter holiday shopping period that runs from November through the end of December.
Markets breathed a huge sigh of relief Wednesday after U.S. lawmakers reached a budget agreement that will stop hundreds of billions of dollars in automatic tax increases and spending cuts that risked plunging the world's biggest economy into recession.
Congress' excruciating, extraordinary New Year's Day approval of a compromise averting a prolonged tumble off the fiscal cliff hands President Barack Obama most of the tax boosts on the rich that he campaigned on.
The Senate on Tuesday approved a bill to prevent the nation from going over a Jan. 1 "fiscal cliff." Here's a look at why it's so hard for Republicans and Democrats to compromise on urgent matters of taxes and spending, and what happens if they fail
A last-ditch tax deal in the Senate might let the U.S. economy escape the worst of the so-called fiscal cliff and avoid going back into recession. But even if the House goes along, the tax increases likely coming in 2013 will dent economic growth anyway.
Democrats and Republicans say signs of progress are emerging in urgent negotiations to avert the looming 'fiscal cliff' ahead of a midnight deadline. A person familiar with the negotiations says Democrats have offered to extend tax cuts for families making up to $450,000 a year and individuals making up to $400,000.
Millions of families and businesses will get hit by big tax increases a lot sooner than many realize if Congress and the White House don't agree on a plan to skirt the year-end fiscal cliff of higher tax rates and big government spending cuts. In fact, they already have.
The number of Americans seeking unemployment benefits fell sharply for a fourth straight week, a sign that the job market may be improving. Weekly applications for unemployment benefits fell 29,000 last week to a seasonally adjusted 343,000, the lowest in two months.
Republicans are proposing a "fiscal cliff" plan that revives ideas from failed budget talks with President Barack Obama last year, calling for raising the eligibility age for Medicare, lowering cost-of-living hikes for Social Security benefits and bringing in $800 billion in higher tax revenue.
Feeling the pinch of the sluggish economic recovery, many Americans setting out on the nation's annual Thanksgiving migration sacrificed summer vacations, relied on relatives for airfare or scoured the Web for travel deals to ensure they made it home.