December 15, 2003

Last-minute moves can save big on taxes

Jobs and Growth Tax Relief Reconciliation Act of 2003 brings important changes to tax filings this year

STORY IDEA: December represents more than just your last days to shop for winter holiday gifts, it also represents your last chance to shop for tax savings on your 2003 tax bill. Though the April 15 deadline for filing is still months away, the deadline for many last-minute tax-saving moves is December 31.

Local attorney Maureen Kinney of Johns, Flaherty & Collins can offer another list you’ll want to check twice this season: a list of simple year-end tax tips that can save you big money.

BACKGROUND: While year-end tax planning is always important, taxpayers this year have more to gain from acting before 2004. The new Jobs and Growth Tax Relief Reconciliation Act of 2003 is effective this year, representing the country’s third largest tax-cut in history. It lowers income tax rates, increases the child credit, eliminates the so-called marriage penalty and eases tax on dividends and capital gains.

Taxpayers will want to take full advantage of the tax breaks while they can. Officially, most of them are slated to end within a few years, unless legislators act to make them permanent. Congress is increasingly using such short-term legislative moves to ensure more flexibility when handling the federal balance sheet.

CONTACT: Maureen Kinney, Johns, Flaherty & Collins, 608-784-5678 or Annette Mikat, Mikat Public Relations, 608-782-1780.