Health Tax Credit Added to Bush Tax Cut | AccountingWEB

Health Tax Credit Added to Bush Tax Cut

As the Bush budget makes its way through Congress, more goodies are being added to sweeten the pot for taxpayers. The latest additions include a tax credit for taxpayers who purchase their own health insurance, a tax break for homeowners who invest in solar power, and a tax-deductible savings account for farmers and ranchers.

The showcase features of the Bush tax cut still include relief for married couples, a repeal of the estate tax, and a doubling of the $500 child tax credit.

A proposed health insurance benefit would provide a credit of $1,000 for individuals with up to $30,000 in adjusted gross income, and $2,000 for married couples with adjusted gross income up to $60,000. The credit would be refundable, so even taxpayers who owe no income tax would be entitled to a rebate.

The proposed tax-deductible savings accounts for farmers and ranchers would encompass savings accounts of up to 20 percent of income.

Other proposals include a 15 percent tax credit for home water heaters and electric systems powered by solar energy, and a $400 annual credit for teachers who spend their own money on classroom supplies.

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