Tax Savings Guide

Individuals: Individuals can expect tax relief in a variety of ways.
(Click any topic from the Guide Contents on the right for more details)

• Income tax rates are reduced for ordinary income (e.g., salaries, wages, interest, and dividends).

Planning Opportunities:
- Bigger Paychecks
- Bigger Retirement Savings

• Dividend income is taxed at lower rates than other ordinary income.

Planning Opportunities:
- Invest in Stocks and Mutual Funds

• Tax rates are reduced for capital gains income (e.g., sales of stocks and other capital investments).

Planning Opportunities:
- Invest in Stocks and Mutual Funds
- College Savings Idea

• The “marriage penalty” that results from inequities between the tax rate schedules for singles
  and married couples is reduced.
  
  
• A very modest change has been made to provide some relief from the alternative minimum
  tax.

Businesses: Businesses have also received favorable changes.
(Click any topic from the Guide Contents on the right for more details)

• The cost of equipment and vehicles can be deducted more rapidly, rather than using slower depreciation methods.
  
  
• Where depreciation is still required, larger write-offs during the first year are allowed.