Congress has approved, and President Obama has signed the Tax Relief, Unemployment Reauthorization and Job Creation Act of 2010. The bill extends the Bush-era individual and capital gains/dividends tax cuts for all taxpayers and sets a top estate and gift tax rate of 35% with a $5 million exclusion for two years.
Bill highlights include new items such as:
- An estate and gift tax relief with an estate and gift tax rate of 35% and exemption of $5 million. The new law also allows any unused exemption of a deceased spouse to be transferred to the surviving spouse by way of election. This provision allows a couple to exempt up to $10,000,000 from estate tax without the need for complicated estate planning.
- A payroll tax cut of 2% for employees for 2011. Employer’s portion remains the same. The 2% rate cut also applies to the social security portion of the self-employment tax.
Bill extends certain items such as:
- Maintain individual tax rates
- Maintain capital gains/dividend tax rates
- Two-year AMT patch
- $1,000 child tax credit
- American Opportunity Tax Credit and other education incentives
- Research and development credit for 2010 and 2011
- Business extenders
- Energy incentives
Visit the IRS website for all the particulars.
Merry Christmas from all of us at Calvary Baptist Church!