New Tax Laws

[A1 Lawn@Landscapes]

I just got my tax law change update from H&R Block.( I teach the course and work as a preparer during the winter). The basic changes are ,

1) Section 179 deduction raised from$25,000 to $100,000
2) Child Tax Credit is now $1,000 per child. Eligible taxpayers will receive a $400 advance payment with the first checks going out this month ! Key word is taxpayer. You need to have taxable income for this advance.
3) For 2003 and 2004 bonus depreciation on eligible purchases of 30% or 50%.
4) Tax rates lowered. If you make more than 56,801 this year MFJ, your tax rate will drop by 2-3.6% depending. Less than 56,801 your tax burden stays the same. 10-15%
Taxable Income Last Years tax rate This years
$ 56,801-114,650 27% 25%
$ 114,651-174,700 30% 28%
$ 174,701-311,950 35% 33%
$ 311,951-Bill Gates 38.6% 35%

Any questions feel free to ask.