The fiscal cliff crisis was a scary and ultimately unfortunate chapter in our nation's recent history. No matter what side of the aisle you are on, the tumultuous nature of the discussions and the 11th hour negotiations were a bit embarrassing for everyone involved -- and it left every American perched at the edge of their seats, waiting to see how the fiscal cliff deal would impact their financial situation.

With the deal done, Atlanta residents now know what that impact will be. For pretty much everyone, it means a tax hike -- and for those who earn a significant income, it means even more increased taxes. Here are a few of the major points from the deal:

  • Payroll taxes: prior to the deal, they sat at 4.2 percent. But a universal bump in payroll taxes will lift that rate to 6.2 percent.
  • Income taxes: for those earning $400,000 or less per year, nothing changes (this also applies to joint-filing married couples who earn $450,000 or less). However, previous tax cuts have expired for those above those two income lines, meaning they will pay nearly 40 percent (39.6 percent to be exact).
  • Personal exemptions and itemized deductions: these are being "phased out" for those earning more than $250,000 (or $300,000 for the previously mentioned joint-filing married couples). So, these people will pay more on their taxes as a result.
  • Alternative Minimum Tax (AMT): thanks to the deal, it will now be adjusted for inflation. Previously, the AMT would have to be amended every year to avoid middle class filers from being hit by the tax, which was designed as an alternative tax floor for wealthier filers.

Source: Bloomberg, "The Fiscal-Cliff Deal and Taxes: We'll All Pay More," Karen Weise, Jan. 2, 2013