What's in the 'fiscal cliff' deal?

Updated 7:31 PM ET, Fri January 4, 2013

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Most American workers will get smaller paychecks in 2013 because the "fiscal cliff" deal did not extend the 4.2% Social Security tax rate. <a href="http://money.cnn.com/infographic/news/economy/fiscal-cliff-tax/" target="_blank">Check out this CNNMoney chart</a> to see how much more tax you may have to pay. (Source: CNNMoney)

Photos: What's in the 'fiscal cliff' deal?

Payroll taxes – Most American workers will get smaller paychecks in 2013 because the "fiscal cliff" deal did not extend the 4.2% Social Security tax rate. Check out this CNNMoney chart to see how much more tax you may have to pay. (Source: CNNMoney)

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Tax rates are going up for the wealthiest Americans. The tax rate increases from 35% to 39.6% for individuals with incomes of more than $400,000 annually and $450,000 for couples. <a href="http://money.cnn.com/2013/01/01/news/economy/fiscal-cliff-rich/index.html?iid=SF_BN_LN" target="_blank">As CNNMoney's Tami Luhby reports, for the rich, "it could have been worse."</a> (Source: CNNMoney)

Photos: What's in the 'fiscal cliff' deal?

Tax rates – Tax rates are going up for the wealthiest Americans. The tax rate increases from 35% to 39.6% for individuals with incomes of more than $400,000 annually and $450,000 for couples. As CNNMoney's Tami Luhby reports, for the rich, "it could have been worse." (Source: CNNMoney)

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The tax rates for capital gains and dividends -- income that you get from investments or real estate -- are going up for individuals with income of more than $400,000 and $450,000 for couples. <a href="http://money.cnn.com/2013/01/02/investing/fiscal-cliff-dividend-tax-rate/index.html" target="_blank">CNNMoney's Hibah Yousuf reports</a> that "President Obama's initial plan to avoid this fiscal cliff called for nearly tripling the dividend tax rate for families making more than $250,000." (Source: CNNMoney)

Photos: What's in the 'fiscal cliff' deal?

Investment taxes – The tax rates for capital gains and dividends -- income that you get from investments or real estate -- are going up for individuals with income of more than $400,000 and $450,000 for couples. CNNMoney's Hibah Yousuf reports that "President Obama's initial plan to avoid this fiscal cliff called for nearly tripling the dividend tax rate for families making more than $250,000." (Source: CNNMoney)

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A series of important tax breaks for families -- the American Opportunity Tax Credit, the Child Tax Credit and the Earned Income Tax Credit -- have been extended for five years. The Dependent Care Tax Credit has been permanently extended. <a href="http://money.cnn.com/2013/01/03/pf/taxes/family-tax-breaks-fiscal-cliff/index.html?iid=SF_BN_LN" target="_blank">Read more about the tax breaks</a>. (Source: CNNMoney)

Photos: What's in the 'fiscal cliff' deal?

Family tax breaks – A series of important tax breaks for families -- the American Opportunity Tax Credit, the Child Tax Credit and the Earned Income Tax Credit -- have been extended for five years. The Dependent Care Tax Credit has been permanently extended. Read more about the tax breaks. (Source: CNNMoney)

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Personal exemptions and itemized deductions are limited for individuals with incomes more than $250,000 annually and married couples with incomes more than $300,000. Those with incomes above $422,500 will not qualify for a personal exemption. (Source: CNNMoney)

Photos: What's in the 'fiscal cliff' deal?

Itemized deductions – Personal exemptions and itemized deductions are limited for individuals with incomes more than $250,000 annually and married couples with incomes more than $300,000. Those with incomes above $422,500 will not qualify for a personal exemption. (Source: CNNMoney)

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The deal extends long-term unemployment benefits and includes a number of tax breaks for individuals and business (<a href="http://money.cnn.com/2013/01/03/pf/taxes/family-tax-breaks-fiscal-cliff/index.html?iid=SF_BN_LN" target="_blank">read about the tax breaks</a>). Also, under the deal, the income exemption level for the Alternative Minimum Tax, or AMT, is permanently indexed to inflation. (Don't know what the AMT is? <a href="http://money.cnn.com/magazines/moneymag/money101/lesson18/index7.htm" target="_blank">Read this 101 from CNNMoney</a>.) (Source: CNNMoney)

Photos: What's in the 'fiscal cliff' deal?

Tax breaks, unemployment benefits, AMT – The deal extends long-term unemployment benefits and includes a number of tax breaks for individuals and business (read about the tax breaks). Also, under the deal, the income exemption level for the Alternative Minimum Tax, or AMT, is permanently indexed to inflation. (Don't know what the AMT is? Read this 101 from CNNMoney.) (Source: CNNMoney)

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The deal deferred decisions about government spending cuts that were supposed to go into effect on January 2. These cuts are called the "sequester." So, what exactly is in the sequester? <a href="http://money.cnn.com/video/news/2012/12/07/n-sequester-government-spending-cuts-fiscal-cliff.cnnmoney" target="_blank">Watch this explanation from CNN's Christine Romans</a>. (Source: CNNMoney)

Photos: What's in the 'fiscal cliff' deal?

The sequester – The deal deferred decisions about government spending cuts that were supposed to go into effect on January 2. These cuts are called the "sequester." So, what exactly is in the sequester? Watch this explanation from CNN's Christine Romans. (Source: CNNMoney)

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The deal also did not address the debt ceiling -- the legal limit for how much the United States can borrow. <a href="http://money.cnn.com/2013/01/04/news/economy/debt-ceiling/?hpt=hp_t2" target="_blank">As CNNMoney's Jeanne Sahadi explains</a>, "If the ceiling isn't raised by late February or early March, the United States runs the risk of defaulting on its obligations because the Treasury would no longer have enough money available to pay all the country's bills." (Source: CNNMoney)

Photos: What's in the 'fiscal cliff' deal?

Debt ceiling – The deal also did not address the debt ceiling -- the legal limit for how much the United States can borrow. As CNNMoney's Jeanne Sahadi explains, "If the ceiling isn't raised by late February or early March, the United States runs the risk of defaulting on its obligations because the Treasury would no longer have enough money available to pay all the country's bills." (Source: CNNMoney)

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