Ok i understand that if we go over the cliff, it will be paid on 2013 taxes by April 2014.
I used that handy online bank sponsored calculator that i linked to here, to determine, based on my income and dependants, my taxes will go up 5 k per yr, or 416 per month.
What if we go over, but only for 3 months.
Would my taxes go up for 2013 (payable April 2014) an additional 416 x 3 ?
Any fixes are likely to be retroactive to January 1st, 2013, which is to say that your April 2014 taxes would not increase for three months as you’ve described. That’s the important phrase to look for in any summary of an eventual deal, “retroactive to the beginning of the year” or something similar. It’s not guaranteed that they’ll go that way, but it’s seen as overwhelmingly probable. As always, consult your local tax expert if and when there is legislation passed.