Maximizing your after-tax dollars to boost your bottom
lineHighlights of the Jobs and
Growth Tax Relief Reconciliation Act of 2003 Capital Gains
CHANGE: Top rate reduced to 15% from 20% (and to 5% from 10% for lower
income taxpayers). TERM: Rates revert to previous levels after 2008.
Dividends
CHANGE: Top rate fell to 15% from 36.5% TERM: Rates revert to previous
levels after 2008. Income Tax
CHANGE: Across-the-board income tax cuts became effective Jan. 1, 2003.
Top tax bracket dropped from 38.6% to 35%. TERM: Rates revert to previous
levels after 2010. Alternative Minimum Tax
CHANGE: Exemption increases to $58,000 (from $49,000) for couples, and to
$40,250 (from $35,750) for singles. TERM: Exemptions revert to previous
levels after 2004. Child Care Credit
CHANGE: Raised to $1,000 from $600 for qualifying taxpayers. TERM: Credit
amount will drop after 2004. Marriage Penalty
CHANGE: Standard deduction raised for married taxpayers to $9,500; 15%
bracket expanded upward. TERM: This provision expires after 2004. If you