Tax Law Changes of 2012

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The bill officially titled “Unemployment Insurance Reauthorization and Job Creation Act of 2010 (HR 4853),” extended many of the Bush era tax cuts of “The Economic Growth and Tax Relief Reconciliation Act of 2001” (EGTRRA) that then President Bush signed into law. As per the announcement on Desire to Learn, I’ll call this new bill “The Bush Tax Cut Extension.” The bill was signed into law December 17, 2010. I am happy with most of the provisions and cuts as they positively affect most individuals’ lives in this country, including mine. The Bush Tax Cut Extension applies to small businesses as well but I will focus on the laws that affect mainly individuals. Working people, both rich and poor, will be able to save more with the tax…show more content…
According to the researchers at CCH, “Without this patch…an estimated 21 million additional households would be subject to the AMT.” The AMT was designed so that higher income earners would have to pay some tax and not be allowed all the deductions and credits. However, the AMT has increasingly affected more middle income taxpayers. This is a really good provision that helps many families keep more of their hard earned income. Also, the National Health Service Corps Scholarship Program and the Armed Forces Scholarship Program continue to be qualified scholarships for exclusion from income purposes through 2012. Without the tax extensions, in 2010 this would have had to be included in income. I feel that people who are promoting our nation’s health and fighting for our country should not have to pay tax on their scholarships, making this another great aspect of the tax cuts. Overall, there are dozens of other tax cut extensions in this Bush Tax Cut Extension bill that were recently passed. I touched on some of the key ones that affect individuals. I am happy and grateful that it did pass as well as millions of other Americans most likely are. This helps students, parents, homeowners, working individuals, married couples, investors, and really every individual. We are all in some way, shape, or form affected by these tax
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