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The IRS has set many tax deductions and benefits in their place for people. Unfortunately, some taxpayers who earn a higher level of income can see these benefits phased out as their income ascends.

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Congress finally acted on New Year's Day, passing the "fiscal cliff" legislation. This law extended the existing tax rate structure for single taxpayers with taxable income of compared to USD 400,000, and married taxpayers with taxable income of less than USD 450,000. For those with higher incomes, the top tax rate was increased to thirty-nine.6% These limits are determined until the foreign earned income difference.

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