BNA Income Tax Planner: 2010 Tax Relief Act Updates
BNA Income Tax™ Planner has been updated to reflect the provisions in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
Changes to extend the Economic Growth Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003, to 2011 and 2012:
- Rate Schedules: The 2010 rate schedules have been extended including the top bracket of 35% and the 10% bracket.
- Capital Gains: The 2003 changes to the capital gain computations have been extended including qualified dividend treatment as capital gain and the top 15% rate. The Security Transaction Analyzer has been revised to eliminate 5-year gains for sales in 2011 and 2012.
- Standard Deduction: The 2010 standard deduction amounts have been extended including the 200% of single amount for married filing jointly.
- Personal Exemption Floor: The repeal of the phase-out of personal exemptions has been extended.
- Itemized Deductions Floor: The repeal of the 3% floor under itemized deductions has been extended.
- Child Tax Credit: The $1000 child tax credit has been extended as well as the 2001 revisions to the calculation of the credit.
- Adoption Exclusion and Credit: The 2001 changes to the adoption credit and exclusion have been extended.
- Earned Income Credit: The 2001 changes to the earned income credit have been extended.
- Education Loan Interest: The 2001 changes to the computation of the Education Loan Interest Deduction have been extended.
- Dependent Care Credit: The 2001 changes to the limits for the dependent care credit have been extended. See the Dependent Care Exclusion & Credit worksheet.
Changes to reflect extension of other provisions:
- AMT Exemption: The Alternative Minimum Tax Exemption has been increased in 2010 and 2011.
- Sales Tax Deduction: The deduction for state and local sales taxes has been extended to 2010 and 2011.
- Credits Allowed: The allowance of personal credits against the Alternative Minimum Tax has been extended to 2010 and 2011.
- Hope Scholarship Credit: The American Opportunity changes to the Hope credit have been extended to 2011 and 2012.
- Tuition Expense Deduction: The above the line deduction for qualified tuition expenses has been extended to 2010 and 2011.
- Nonbusiness Energy Credit: The credit for nonbusiness energy property has been extended to 2011, and has been modified.
- Child Tax Credit: The reduction to $3000 of the floor that is used to determine the refundable portion of the child tax credit has been extended to 2011 and 2012.
- Earned Income Credit: The increase in the earned income credit percentage for 3 or more qualifying children and the reduction of the marriage penalty have been extended to 2011 and 2012.
- Conservation Contributions: The special limits on conservation contributions have been extended to 2010 and 2011.
- Mortgage Insurance Premiums: The deduction for mortgage insurance premiums has been extended to 2011.
Other Changes:
- Self-employment Tax: The self-employment tax rate has been reduced by 2% in 2011 to reflect a reduction in the employee FICA tax. The computation of employee FICA has been adjusted as well.
- New Sunset Provision Option Added: The former calculation option to Apply 2001 EGTRRA Sunset Provisions in 2011 has been changed to "Sunset 2001 & 2003 Tax Cuts in 2013" Unchecking the option, now will continue, to years after 2012, the capital gain cuts in the Jobs and Growth Act of 2003 as well as the cuts in the 2001 Economic Growth Tax Relief and Reconciliation Act of 2001. Please Note: If the former option was unchecked and saved as one of the default calculation options it will revert to checked in this version to reflect actual law. You can then uncheck it again and save it as one of the default calculation options, if you so desire.
Related Information
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BNA Income Tax Planner and the 2010 Tax Relief Act
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