The House and Senate voted today to extend the payroll tax cut and unemployment benefits, while also avoiding a Medicare fee cut for doctors for the rest of the year. President Obama has promised to sign the legislation, which means Americans will continue to receive bigger paychecks through the rest of the year.

The IRS has decided that businesses will not be required to reconcile their gross receipts with merchant card transactions reported on Form 1099-K on their 2012 or later returns.

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Reductions in Individual Income Tax Rates

Extends the 10% bracket. Under current law, the 10% individual income tax bracket expires at the end of 2010. The legislation extends the 10% individual income tax bracket for an additional two years, through 2012.

Extends the 25%, 28%, 33%, and 35% brackets. Under current law, the 25%, 28%, 33%, and 35% individual income tax brackets expire at the end of 2010. Upon expiration, the rates become 28%, 31%, 36%, and 39.6% respectively. The legislation extends the 25%, 28%, 33%, and 35% individual income tax brackets for an additional two years, through 2012.