The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act (2010 Tax Relief Act) was signed into law by President Obama on December 17^th providing a two year extension on many Bush-era tax cuts as well as several new tax relief measures. 

Following are some of the extensions through Dec. 31, 2012:

*       Maximum capital gain and dividend tax rate of 15% for individual taxpayers

*       Lower individual income tax rates

*       Marriage penalty relief

*       AMT patch

*       Enhanced Earned Income Tax Credit

*       $1,000 Child Tax Credit

*       "Pease" limitations

*       Repeal of Personal Exemption Phase Out (PEP)

*       Adoption Credit and Dependent Care Credit

*       American Opportunity Tax Credit (formerly Hope Education Credit)

*       Education Assistance Exclusion (of up to $5,250 in employer-provided education assistance)

*       Deduction of certain mortgage insurance premiums

*       Elimination of 60-month rule for $2,500 above-the-line student loan interest deduction; Armed Forces Scholarship Program and National Health Service Corps Program exclusion; and Coverdell Education Savings Accounts maximum contributions of $2,000

*       Individual Tax Extenders including state and local sales tax deduction, higher education tuition deductions, charitable contributions of IRS proceeds and teacher's classroom expense deduction.

New tax relief measures include the following:

*       Reduction in Social Security payroll deduction by 2% for the calendar year 2011

*       Return of estate tax but with a reduced maximum tax rate of 35% and a $5M exclusion (click below for more info)

*       Business incentives such as 100% bonus depreciation and changes in section 179 expensing (click below for more info)

 Learn More on the Estate Tax and Changes in Depreciation 

Special thanks to Milan Slak for providing additional information on the changes in depreciation and estate tax.  To contact him: