13 pages of summaries are what comprises the new Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.
My daunting task, should I accept it (and let's face it, I am accepting it because I'm writing this), was to wade through the jargon to find what would be useful to the average tax payer, like you and me.
There are 7 main parts to this bill, but today we are covering what's just under the first section called the "Temporary Extension of Tax Relief."
What's found in this section of the bill is a lot of tax break extensions from 2001 and 2003 that were set to expire, but are being extended through 2012. (You may feel some deja vu, but this is what the American Recovery and Reinvestment Act did last year for 2009 as well.)
The bill...
· Continues the reduction in income tax brackets for 10%, 25%, 28%, 33% and 35%
· Extends the capital gains and dividend rates
· Increased extension of credit from $500 to $1000 for the Child Tax Credit
· Extends the marriage penalty relief
· Gives incentives for families and children
o Expanded tax credit for child care costs for children under 13 and special needs dependents
o Tax credits for qualified adoption expenses
o Tax breaks for employers purchasing or building a child care facility for their employees
o Continuing the 45% tax credit for working families' first $12,570 worth of income
· Education incentives for those going to school
o Coverdell savings accounts remain tax exempt
o Employee can exclude up to $5,250 worth of income for employer provided education assistance
o Student loan interest deduction up to $2,500
o Excludes scholarships from income
· Bond exclusion
· American Opportunity Tax Credit extended (Rebate of up to $2,500 of tuition or education related expenses)
No comments:
Post a Comment