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Newspaper
Ottawa Herald
Location
Ottawa, Kansas, United States of America
Date
Jan 20, 2003
Page
11
Washington AP outlines 2002 tax code shifts from the 2001 1.35 trillion tax cut. Highlights include a new 10 percent income tax rate for low incomes, higher child tax credit to 600, boosted IRA and 401(k) limits, expanded education savings options, and a fall in the estate tax rate from 55 to 50 percent with higher exemptions.
Many taxpayers who did not receive a 2001 rebate could still gain from the 10 percent rate reduction on their 2001 returns. Dependents and non resident aliens may qualify, with worksheets guiding eligibility. The rate will rise to apply to higher income levels in 2008.
GAO found about 4.3 million eligible taxpayers did not claim the earned income tax credit in 1999, yielding a 75 percent participation rate. The program, costing about $30 billion, targets the working poor and has broad bipartisan support, with parents of one or two children most likely to claim it.
The IRS aims to shift filers to electronic processing as 45 million returns are expected to be filed electronically in 2002. Americans will file about 132 million personal tax returns by the April 15 deadline, with electronic access expanding to most forms and reduced signing barriers for preparers. The IRS website remains among the world’s busiest, with over 1 billion hits and 220 million downloads last year.
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