Will the new law affect your
tax planning?
November 2004
At the end of September, Congress passed the Working
Families Tax Relief Act of 2004. The legislation extends through 2010
the following four tax breaks that were scheduled to revert to prior
levels after 2004:
* the $1,000 per child tax credit.
* the expanded 10% tax bracket.
* the expanded 15% tax bracket for married couples to
double that of singles.
* the increased standard deduction for couples to twice
that for singles.
The law also extends the higher alternative minimum tax
exemption ($40,250 for singles, $58,000 for couples) through 2005.
Businesses will also get some tax relief in the extension of several
business tax credits that had recently expired.
Your year-end tax planning should look at both 2004 and
2005 and have as its goal achieving the lowest overall tax liability. As
you consider the moves you should make before year-end to cut your
taxes, be sure to factor in these latest tax changes.
For details and assistance with planning that fits your
individual situation, give us a call.
Return to 2004 Tax Tips
