TAX CHANGES YOU SHOULD KNOW ABOUT

摘要

The American Recovery and Reinvestment Act of 2009, signed earlier this year in response to the economic crisis, made several tax changes that affect you, your business, and your employees. Here are some highlights.rnIn both 2009 and 2010, you and your employees are eligible for a tax credit of $400 ($800 for a married couple filing jointly), or 6.2 percent of earned income, if that is less. Earned income includes funds you receivernfrom salary, commissions, and self-employment. This is gradually phased out once your adjusted gross income exceeds $75,000 (or $150,000 for joint filers). However, there is no credit if your gross income is $95,000 or higher ($190,000 for joint filers). New withholding tables are permitting your employees to benefit immediately through reduced paycheck deductions.