2002 Tax Law Changes
Many big changes in the 2001 tax bill became effective in 2002.
2002 New rates for all taxpayers
Tax rates drop again modestly -- in 2002.
  Social Security contribution limit goes up
You could pay more into the system this year and in 2003 as well.
  The child tax credit holds at $600.
For taxpayers with children under age 17.
  Reporting levels hold steady for household workers
For taxpayers who hire household help.
  401(k) and related contribution limits go up
For taxpayers whose employers offer 401(k) or 403(b) plans.
  Luxury tax wont sting so much in 2002
For taxpayers who buy expensive cars and boats.
  Expanded college tax breaks
For students in college or families with students in college
  Higher automobile expense mileage rate
Affects taxpayers using personal vehicles at work or for medical treatment.
  A break on the kiddie tax
For minors under age 14 with investment income.
  Standard deduction goes up
Changes to the standard deduction for 2002.
  Deductible IRA limits go up
For taxpayers trying to build up retirement stakes.
  Personal Exemption goes up
Affects all members of your family.
  Alternative Minimum Tax exemption holds steady
For taxpayers who might have too many deductions.
  Capital Gains rates
Lower capital gains rate for assets held for five years or more.
advertisement