This in not advice (etc, etc.), just my notes on the tax bill. There are other provisions related to this bill that I did not include here. You can download a copy of a more complete summary from the Kansas Society of Certified Public Accountants.
The President signed the Working Families Tax Relief Act of 2004 on October 4th, 2004.
Provisions of the act that apply to individuals include:
A single definition of a child. Previously, there were several definitions of a qualifying child, depending upon the code section. If a child meets the new definition, the existing support and gross income tests do not apply. The new definition applies to:
- the dependency exemption
- the child credit
- the earned income tax
- the dependent care credit
- head-of-household filing status
Various Tax Benefits extended through 2010
- Marriage penalty relief
- Expanded 10% income bracket
- $1,000 child tax credit (15% refundability rate begins in 2004)
Changes to the way military families compute child and earned income credits
Extension of other provisions through 2005
- The $250 deduction for teacher classroom expenses
- Archer Medical Savings Acconts
- Repeal of credit phase-out for electric and clean fuel vehicles
- Allows nonrefundable tax credits against the AMT
In a note of how the world is changing due to terrorism, Congress broadened the disclosure authority to allow an individual's name, mailing address and social security number to be disclosed to enforcement agencies.