Take Advantage Of Car Games – Read These 7 Tips

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However, in the 2011 budget proposal of President Obama, lower-income Americans will not be supported and taxed at 15 percent rates. Both rates for individuals with income of over $200,000 a year and married couples earning more than $250,000 a year will be 20 percent.

Paycheck Credit

Under the 2009 stimulus bill called “Making Work Pay, couples with income of less than $190,000 a year were eligible to receive up to $800 more in their paychecks every year.

Making Work Pay is set to expire next year

Income taxes

In 2010, in America, individuals who earn over $373,650 are taxed at 35 percent. If Congress approves the expiration of the Bush tax cuts, the tax rate for the highest-earners will rise to 39.6 percent in 2011. So, individuals who earn nearly $80,000 a year are taxed at from 25 percent to 28 percent.

There is a strong opposite opinion of tax breaks between Democrats and Republicans. The former wish to extend tax cuts only to those earning less than $250,000 a year while for the latter, they should be extended for all.

Estate Taxes

2010 was a completely tax-free year for real estate. However, the tax will come back with estate tax in 2011 with a rate of 55 percent in 2011.

Tuition Credit

In 2010, students are eligible to deduct up to $2,500 of college-related expenses every year. This tuition credit is set to expire in 2011.

Marriage Tax

The standard tax deduction for married couples will expire on December 31, 2010

Child Tax Credit

In 2011, parents can file for a tax credit of only $500 for each child living in their home.

Mortgage Premiums

Through 2010, married couples with income of less than $54,500 a piece filing separately and individuals earning less than $109,000 a year could receive monthly deduction of premiums for mortgage insurance.

This credit will no longer exist after December 31.