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Congress finally acted on New Year's Day, passing the "fiscal cliff" laws. This law extended the existing tax rate structure for single taxpayers with taxable income of as compared to USD 400,000, and cibai married taxpayers with taxable income of less than USD 450,000. For people higher incomes, the top tax rate was increased to thirty-nine.6% These limits are determined ahead of foreign earned income exemption. If you might be doing a somewhat more research or spend a time on IRS website, shortly come across with many types of tax deductions and tax credits.