Bush signed Bill on Wednesday...
 

The bill Bush signed Wednesday reduces income tax rates, lowers the marriage penalty, cuts capital gains taxes and boosts the expensing allowance for small business investment. It also significantly reduces taxes on dividends -- but does not eliminate them, as Bush had requested. ( Full story )

It also boosts the child tax credit from $600 a year per child to $1,000, and Bush has ordered the Treasury Department to begin issuing checks of $400 per child to 25 million families who claimed that credit last year.

TAX CUTS AND YOU

Here are average annual savings that taxpayers with various levels of income can expect under the proposed tax measure.

$41,000 INCOME
• Single: $211
• Married couple with two children under 17: $1,208

$63,000 INCOME
• Single: $551
• Married couple with two children under 17: $1,100

$126,000 INCOME
• Single: $1,827
• Married couple with two children under 17: $3,028

$170,000 INCOME
• Single: $2,743
• Married couple with two children under 17: $3,148

(Source: AP/Deloitte & Touche)

Thanks for the info.
 

If I understand you correctly then I, being single, claiming my son should expect a $400 check sometime in the future?

That $400 coming is already back in the economy with drive showers for Father's Day. Just doing my part!!!:D

Luv-N-It - yes, that's the way it was explained to me. (I also have one child.)
My big question is on the capital gains cut. My understanding is that it is going from 20% down to 15%. I'm in the process of selling my house now, which I have not lived in for two years, so I'm going to have to pay. My question is what percentage it's going to be when I file next year. does the new rate apply immediately, or does it go into effect next year? Anyone know?

IMHO
RM, I read it is retroactive to the begining of this year you would be OK, check with pros however.

Yea I know how ya feel, I just bought a new 03' Chevy Dually, guess where mine is going:D :p :D

DON'T SPEND IT ALL YET!!!
 

According to the papers:

'Starting in the last week of July, the government will send checks to the 25 million parents who claimed a 2002 child tax credit. The automatic refunds — no phone calls or forms required — will be advance payments on their 2003 credits, in an amount equal to the increase provided by the new law up to $400 per child. '

Notice it says 'up to $400'. Not everyone will get $400. It's based on your income.

For example:

'Because of the formula for calculating the credit, most families with incomes from $10,500 to $26,625 will not benefit.'

Luv-n-It
 

Don't rejoice to soon. Gov Taft is trying to raise Ohio taxes, the jerk

Re: DON'T SPEND IT ALL YET!!!
 

Most people here are safe aren't we all under $10K @ year.:rolleyes:

If your a family in that bracket your right they better not spend it all in one place!