JACKSONVILLE, Fla. -- The fiscal cliff has been negotiated, but what does that mean to you personally?
Tax season has officially kicked off, but if you're ready to jump for joy over your refund, there's a few things you'll need to know.
Jackson Hewitt manager Brenda Gravitt thinks now that the fiscal cliff negotiations have passed, things are going to be better.
"For one thing, we don't have the fear of our lower income tax payers being affected by the Alternative Minium Tax," she said.
This tax was originally created to affect wealthy tax payers, but over the years it wasn't being adjusted for inflation, affecting more and more of the middle class.
"It was sort of like the step child. It didn't get the attention that it deserves. But now they've put something in place that will continue year to year, so that's going to be better."
That alone will save millions of tax payers $3,000 in taxes. The fiscal cliff agreement isn't going to change the way you file your taxes.
"Whatever you brought to your tax preparer in the past, you'll still bring those same items in."
But it is going to affect your wallet.
"It will affect your take home pay," Brenda said.
You can expect a 2 percent decrease in your paycheck for social security.
"Now that does provide for retirement in the future."
But that should only be supplemental.
"Which is why most people should contribute to a 401k at work or start an IRA deduction account."
Other deductions that have been extended include the child care credits and student loan interest.
"They're sort of connected because they passed those to relieve some of the burden of contribution to social security on the middle and lower income classes."
You can file your tax returns now. The IRS will start processing them Jan. 22. And Jackson Hewitt recommends calling the IRS to get a five-digit passcode to protect against tax return identity theft.
