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SCA Tax Update
Jun 2, 2003
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Contents
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Quote Of The Month
Tips
Subscriber Feedback
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Quote of the Month
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Consider the postage stamp: Its usefulness consists in its
ability to stick to one thing until it gets there.
Josh Billings
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Tips
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As a follow up to the information on break-even analysis,
here's an excel worksheet that will calculate exactly what
you need in sales to reach the breakeven point (requires
MS Excel).
More detailed worksheets that will analyze by profit
line and department are available at our online store.
Is your employer giving you the benefit of the new tax cut?
Here are the new IRS withholding tables (requires the Adobe reader)
so you can check for yourself.
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Feature Article- Top Questions on the Bush Tax Cut
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Q: Will I see more money in my paycheck?
A: Everyone except single taxpayers who make less than
$6,000 and married couples who make less than $12,000 will
see at least a little more money in their paychecks. Other
workers will benefit from an expansion of the 10 percent
bracket. Single taxpayers will pay 10 percent tax on the
first $7,000 in income, up from $6,000. Married taxpayers
will pay 10 percent tax on the first $14,000 in income, up
from $12,000.
Q: What are the new income tax rates?
A: The two lowest rates remain unchanged at 10 percent and
15 percent. Middle-income workers will see their income
tax rates drop 2 percentage points. The 27 percent rate
falls to 25 percent, the 30 percent rate to 28 percent and
the 35 percent rate to 33 percent. Those in the highest
bracket will see their income tax rate fall from 38.6
percent to 35 percent.
Q: When will I start seeing more money in my paycheck?
A: The Treasury Department has begun instructing employers
to withhold less taxes from their employees' paychecks
starting no later than July 1. You should see a change in
your paycheck in July. See our link above to the new
withholding tables to determine this amount.
Q: If the tax cuts reach back to Jan. 1, will I have paid
more taxes than I owe from January through June?
A: Yes. That money will be returned to you when you file
your 2003 tax return next year.
Q: Will I get a check in the mail?
A: If you are a parent who qualified for the $600 child
tax credit last year and your child was born after 1986,
you will qualify for the increased $1,000 child credit
this year. The Internal Revenue Service will send you a
check as an advance refund worth up to $400 per child.
Q: Do I need to apply for the refund?
A: No, the IRS will mail a check based on your 2002 tax
return. You don't have to call or fill out any forms.
Q: When will I get my check?
A: The checks will go out over three weeks according to
Social Security numbers, and parents will get a letter a
few days before the check. The checks will be sent on July
25 (Social Security numbers ending in 00-33), Aug. 1
(Social Security numbers ending in 34-66) and Aug. 8
(Social Security numbers ending in 67-99).
Q: My first child was born in 2003. Will I get a check?
A: No, but you can claim the refund when you file your
2003 tax return next year.
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General & Unsubscribe Info
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SCA Tax Update © Copyright 2002,
More good news on Bush Tax Cut, except where indicated otherwise.
All rights reserved worldwide. Reprint only with permission
from copyright holder(s). All trademarks are property of their
respective owners. All contents provided as is. No express or
implied income claims made herein. Your business success is
dependent on many factors, including your own abilities.
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© Copyright 2001 Smith, Conley & Associates
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