| Special Alert
May 10, 2004
Did you pay the lowest taxes possible for 2003?
Now that baseball season is
in full swing…did you get to take advantage of some of the Home Runs
available during this past Tax Season?
Special Alert
December 19, 2003
IRS Has $118 Million in Checks to Resend
Cash could be waiting for you if you are one of the more than 200,000 whose
refund or advance child tax credit check was returned to the IRS. Use the
refund search features on this site to find out if the IRS has money for
you.
Special Alert
December 19, 2003
US HOUSE AND SENATE PASS COMPROMISE TAX CUT BILL
The United States Congress has passed the $350 billion tax cut bill, H. R.
2, the Jobs and Growth Tax Relief Reconciliation Act of 2003 this past May. This
bill allows for many great tax planning opportunities. Key
provisions of the bill include:
Acceleration of Certain Previously Enacted Tax Reductions
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Accelerates the increase in child tax credit from $600 to $1,000 for 2003
and 2004. After 2004, the credit reverts to the level provided under
current law. For 2003, the increase in the credit will be paid in advance
(in July 2003), based on information contained in the taxpayer's 2002 tax
return.
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Increases
the standard deduction for married taxpayers filing a joint return to
double the amount for single taxpayers for 2003 and 2004. After 2004, the
relationship between the standard deduction for married filers and single
filers reverts to present law.
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Increases
the size of the 15% regular tax bracket for married taxpayers filing joint
returns to double that of the 15% bracket for single individuals for 2003
and 2004. For tax years beginning after 2004, the bracket reverts to
present law.
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Accelerates the reduction in individual income tax rates: The income
levels for the 10% rate set to take place in 2008 are accelerated to 2003
and 2004. In 2004 the levels are adjusted for inflation. For tax
years beginning after 2004, the levels revert to levels provided by
existing law. For 2003, the tax rates above the 15% rate will become
25%, 28%, 33% and 35%,
but the rate reductions will still sunset as specified in current law.
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Increases
the alternative minimum tax exemption for married taxpayers filing jointly
and surviving spouses to $58,000 and unmarried taxpayers to $40,250 for
tax years beginning in 2003 and 2004.
Growth Incentives
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Depreciation: Allows an additional first year depreciation deduction
equal to 50% of the adjusted basis in the qualified property. Qualified
property is defined in the same manner as property that qualified for the
30% bonus depreciation provision contained in the Job Creation and Workers
Assistance Act of 2002. To qualify, property must be acquired after May
5, 2003 and before January 1, 2005.
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Section
179: Increases the deduction limit to $100,000 for property placed in
service in taxable years beginning in 2003, 2004 and 2005. The phase-out
limit of $200,000 is increased to $400,000 for the same period. The
dollar limitations are indexed annually for tax years beginning after 2003
and before 2006. The provision also includes off-the-shelf computer
software.
Reductions in Taxes on Capital Gains and Dividend Rates
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Reduces
the 10% and 20% rates on net capital gains to 5% (zero in 2008) and 15%
respectively and applies to both regular tax and alternative minimum tax
for assets held more than one year. The provision applies to sales and
exchanges made on or after May 6, 2003 and before January 1, 2009.
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Dividends
received by an individual shareholder from domestic and qualified foreign
corporations will generally be taxed at the same rates that apply to
capital gains. This applies to dividends received in tax years beginning
after 2003 and before 2009.
Other
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Change in
corporate estimated tax payment: 17% of the corporate estimated tax
payment due on September 15, 2003 shall not be due until October 1, 2003.
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