Once again.. this is a preview of what is currently under discussion. It is NOT law, and should not be looked at as political, legal, or financial advice. This is only a brief look at some of the currently debated act, as it impacts our senior clientele.
Capital Gains and Dividends.
Many of our clients are reliant on their investments. Here is what is under contemplation regarding Capital Gains and Dividends.
Under discussion it to temporarily extend the current capital gains and dividend rates. Currently capital gains and dividend rates for individuals below the 25% bracket is equal to zero percent. For those in the 25% bracket and above, the capital gains and dividend rates are 15%. If this portion of the act does not happen, capital gains taxes become 10% and 20% respectively. Dividends will be subject to the ordinary income rates. This proposal extends the current capital gains and dividends rates for all taxpayers for an additional two years, through 2012.
Dependent Care Credit
Many of our clients have adult dependent children, or are themselves dependents of their children. The impact of the dependent care credit is of a direct concern to our elder and disabled clients. Under discussion is to (temporarily) extend the expanded dependent care credit. The dependent care credit allows a taxpayer a credit for an applicable percentage of child care expenses for children under 13 and disabled dependents. The current eligible expenses are $3,000 for one dependent, and $6,000 for two or more dependents. These are proposed to be extended through 2012. If the credit falls back to previous rates, it will be only $2,400 for one dependent and $4,800 for two or more dependents.
Your friends at…
Boston ElderLaw Attorneys
Raynham ElderLaw Attorneys
Andover ElderLaw Attorneys
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