Congress has voted to approve a new tax package recently, extending some tax cuts while changing others. No matter who you are - employed, unemployed, high wage earner or low income - the citizens of Pennsylvania will be affected by this new deal. The Pennsylvania Institute of Certified Public Accountants (PICPA) advises individuals and business owners to pay special attention to the details of this new outcome.
Individuals:
- Extension of jobless benefits for 13 months
- No change to individual tax rates for two years
- Reduced rates on capital gains and dividends for two years
- Payroll taxes reduced by 2 percent for 2011
Business:
- Extension of research credit
- Deductions for most kinds of investment
- Extension of many temporary business tax breaks for two years
A CPA can explain what the elements of this package mean and how they might affect end-of-year tax planning. To set up an interview with a local CPA, please contact Kathleen Miller at (215) 972-6188 or kmiller@picpa.org or Jackie Barnard at (267)675-6255 of jbarnard@picpa.org.
Individuals:
- Extension of jobless benefits for 13 months
- No change to individual tax rates for two years
- Reduced rates on capital gains and dividends for two years
- Payroll taxes reduced by 2 percent for 2011
Business:
- Extension of research credit
- Deductions for most kinds of investment
- Extension of many temporary business tax breaks for two years
A CPA can explain what the elements of this package mean and how they might affect end-of-year tax planning. To set up an interview with a local CPA, please contact Kathleen Miller at (215) 972-6188 or kmiller@picpa.org or Jackie Barnard at (267)675-6255 of jbarnard@picpa.org.