2001 Tax Law Changes: Taxes

2001 Tax Law Changes
Congress passed big tax changes in 2001, but only a small number of them actually took effect during the year. (Real changes start to come in 2002.) Here are the most important changes that will affect your 2001 income tax return.

2001	Tax rate changes Tax rates drop modestly in 2001, more in later years.
	Social Security contribution limit goes up You could pay more into the system this year.
	The child tax credit goes up For taxpayers with children under age 17.
	Higher reporting level for household workers For taxpayers who hire household help.
	401(k) and related contribution limits hold steady For taxpayers whose employers offer 401(k) or 403(b) plans.
	Luxury excise tax wont sting so much in 2002 For taxpayers who buy expensive cars and boats.
	Student loan interest deduction rises in 2001 For families with students in college
	Higher automobile expense mileage rate Affects taxpayers who use personal vehicles at work or for charity
	A break on the kiddie tax For minors under age 14 with investment income
	Standard deduction goes up Changes to the standard deduction for 2001.
	Deductible IRA limits go up For taxpayers trying to build up retirement stakes.
	Personal Exemption goes up Exemptions rise for 2001.
	Alternative Minimum Tax exemption increases For taxpayers who might have too many deductions.
	Capital Gains rates Lower capital gains rate for assets held for five years or more