BUSH TAX CUTS
An extension of Bush tax cuts for all, not just the lower and middle incomers, as Obama wanted. Thus, the 35% top rate on individuals will continue for two years...through 2012. And caps on itemized deductions and personal exemptions won't return until 2013. Ditto for the favorable rates on the dividends and long-term capital gains. The 15% maximum rate on both remains in effect through 2012. The same goes for the 0% rate on gains and dividends for filers in the 10% and 15% tax brackets.
SOCIAL SECURITY
A Social Security tax cut for employees and self-employeds. For 2011 only, the 6.2% tax rate for the employee portion of the Social Security tax will decline to 4.2%, a tax savings of up to $2,136 per filer. This will replace the Making Work Pay Credit, which provided a maximum tax savings of $400 for single filers and $800 for couples.
Meck CPA Austin
