On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the Act). Noteworthy income tax provisions relating individuals, businesses, and the energy sector are set forth below.
Individuals
- Through 2012, marginal income tax rates applicable to ordinary income remain 10%, 25%, 28%, 33%, and 35%.
= Through 2012, capital gains and dividend tax rates for individuals in the 25% tax bracket and above remain 15% and for individuals below the 25% tax bracket remain 0%.
- For 2010, AMT exemption amounts of $72,450 for married individuals filing jointly, $47,450 for unmarried individuals and $36,225 for married individuals filing separately. For 2011, AMT exemption amounts of $47,450 for married individuals filing jointly, $48,450 for unmarried individuals and $37,225 for married individuals filing separately.
- For 2011, employee FICA tax rate reduced from 6.2% to 4.2%, employer FICA tax rate remains 6.2%, and self-employment tax rate reduced from 12.4% to 10.4%.
Please see full Alert below for further information.
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