MARY DALE WALTERS
(RIVERWOODS, ILL, MAY 26, 2001) – CCH INCORPORATED, the leading provider of tax software and information for CPAs, took a look at the Economic Growth & Tax Relief Reconciliation Act that passed Saturday and offered a personal look at the 291-page bill and the 441 changes it created in the tax law. Phil Schwindt, CPA and senior analyst with CCH ProSystem fx Tax, the company’s market-leading professional tax preparation software, created some telling taxpayer scenarios. (For complete coverage of the tax bill provisions, including pension and estate tax coverage, visit www.cch.com/taxbill.)
The following scenarios show the effects of the new law on various income levels, filing statuses and family configurations. Effects are shown for the current tax year, 2006* and 2011*.
Single – no children, $15,000 income
Single – one child, 15,000 income
Single – no children, $30,000 income
Married - One Spouse working, two children, $30,000 income
Single – no children, $50,000 income
Married - both spouses working, two children, $50,000 income
Single - no children, $100,000 income
Married - both spouses working, two children, $100,000 income
Single - no children, $150,000 income
Married - one spouse working, two children, $150,000 income
Single – no children, $300,000 income
Married - one spouse working, two children, $300,000 income
Alternative Minimum Tax
*In this press release, the years 2006 and 2011 reflect provisions of the law due to become effective as if they were in force this year. Data does not reflect anticipated annual inflation adjustments to tax brackets and the Standard Deduction.
Under congressional rules, the legislation will "sunset," or become ineffective, in 2011 unless specifically reauthorized by Congress. Scenarios do not reflect "sunsetting."
SOURCE: CCH ProSystem fx Tax. Permission for use granted.
CCH INCORPORATED 2001
About CCH INCORPORATED
CCH INCORPORATED, headquartered in Riverwoods, Ill., was founded in 1913 and has served four generations of business professionals and their clients. The company produces more than 700 electronic and print products for the tax, legal, securities, insurance, human resources, health care and small business markets. CCH is a wholly owned subsidiary of Wolters Kluwer North America. The CCH web site can be accessed at www.cch.com. The ProSystem fx Office web site can be accessed at www.prosystemfx.com.