Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010
On December 17, 2010, the president signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This Act postpones the sunset of the 2001 and 2003 tax cuts, temporarily reduces the estate tax and extends a number of expired provisions. It also extends unemployment benefits.
Business Provisions include:
- Increased capital investment expensing for small businesses
To see the full list of business provisions – click here
Individual Provisions include:
- Extension of the 2001 Tax Cuts (maintaining lower Income tax rates)
- Capital gain rates remain the same
- Dividends are taxed at capital gain rates
- Alternative minimum tax patch for 2010 and 2011
To see the full list of individual provisions – click here
Payroll Tax Holiday – This act also reduced the Social Security (OASDI) tax rate on employees to 4.2% (from 6.2%). Employers still pay the 6.2% rate. This should result in a 2% net pay increase for the employee, however, with the expiration of the Making Work Pay credit most workers will not see much of a change on their paychecks for 2011.
Please give us a call at 616.393.0398 to discuss any questions you might have.
Geenen & Kolean, PC