900 N. Kings Highway, Cherry Hill, New Jersey 08034
856.667.4100 ·
215.563.0276 ·
Fax: 856.667.3652
The Online Advisor - March 2000
Here's what's happening with tax legislation -
* The House has passed a bill that would reduce the marriage penalty that many two-income couples now pay. According to estimates, about 42 million joint filers would get a tax cut averaging about $470 if the bill became law.
The House bill would increase the standard deduction for couples to double the amount allowed for single taxpayers. It would broaden the 15% income tax bracket for joint filers to twice that for single filers. It would raise the income phase-out level for the earned income tax credit by $2,000 to help low-income couples.
Democrats are proposing a smaller reduction in the marriage penalty, and President Clinton has indicated that he would veto a bill like the one passed by the House.
* Another tax change being discussed is a repeal of the earnings limit for social security benefits paid to individuals age 65 through 69. Currently, social security benefits are reduced for these working seniors by $1 for every $3 they earn over $17,000.
* Also, hearings are being held on the provision in the Tax Relief Extension Act of 1999 (signed into law December 17, 1999) that eliminated installment reporting on sales made by accrual basis taxpayers.
Check our Web site periodically for news on these and other tax issues that could affect your tax and financial affairs.