In 2009 and 2010, individual taxpayers are eligible for a refundable tax credit of 6.2 percent of earned income up to a maximum credit of $400 ($800 for joint filers). Thus, workers receive a credit on the first $8,065 of earned income ($16,130 for joint filers). The credit phases out at a rate of 2 percent for taxpayers with modified adjusted gross income in excess of $75,000 ($150,000 for joint filers). Dependent filers are not eligible for the credit. Neither the maximum credit amount nor the beginning of the phase-out range is indexed for inflation.

The Making Work Pay credit is a temporary provision of the American Recovery and Reinvestment Act of 2009. In 2010 individual taxpayers are eligible for a refundable income tax credit equal to 6.2 percent of earned income up to a maximum credit of $400. Thus workers receive a credit on the first $6,452 of earned income.

Low and moderate-income workers may be eligible for a refundable EITC. Eligibility for the EITC is based on the presence and number of qualifying children in the worker's household, adjusted gross income (AGI), earned income, investment income, filing status, age, and immigration and work status in the United States. The amount of the EITC is based on the presence and number of qualifying children in the worker's household, AGI, earned income, and filing status.

The FICA tax is imposed to fund two different benefit programs: (1) the old-age, survivor and disability insurance program ("OASDI"), which funds the Social Security program that provides monthly retirement, disability, and survivor benefits; and (2) Medicare hospital insurance ("HI"). Generally, the OASDI tax rate of 12.4 percent applies to taxable wages and salaries up to the OASDI wage base ($106,800 for 2011 and $110,100 for 2012), and the HI tax of 2.9 percent applies to all taxable wages and salaries. Generally, one-half of both OASDI and HI taxes are paid by the employer and the other...

The BBEDCA baseline, which is commonly used in budgeting and is defined in the statute, reflects, with some exceptions, the projected receipts level under current law, including the American Taxpayer Relief Act of 2012 (ATRA). However, while ATRA made much middleclass tax relief permanent, it extended the American Opportunity Tax Credit (AOTC), Earned Income Tax Credit (EITC) expansions, and Child Tax Credit (CTC) expansions only through 2017. This Budget uses an adjusted baseline that is intended to be more realistic. The adjusted baseline permanently continues the AOTC, EITC, and CTC...

The BBEDCA baseline, which is commonly used in budgeting and is defined in the statute, reflects, with some exceptions, the projected receipts level under current law. However, while the American Taxpayer Relief Act of 2012 (ATRA) made most of the 2001 and 2003 tax cuts and Alternative Minimum Tax relief permanent, it extended the American Opportunity Tax Credit (AOTC), Earned Income Tax Credit (EITC) expansions, and Child Tax Credit (CTC) expansions only through 2017. This Budget uses an adjusted baseline that permanently continues the AOTC, EITC, and CTC expansions extended through 2017...

Title XII of the Pension Protection Act of 2006 made numerous changes to provisions of the Internal Revenue addressing charitable giving and tax-exempt organizations. Particular changes to the law were made regarding supporting organizations and charitable giving arrangements commonly referred to as donor advised funds.

Section 703 of the Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA) directed the Secretary of the Treasury to conduct a study concerning the magnitude of illicit tobacco trade in the United States and to submit to Congress recommendations for the most effective steps that the Department of the Treasury can take to reduce such illicit tobacco trade. The Secretary was directed to include a review of the loss of Federal tax receipts due to the illicit tobacco trade in the United States and the role of imported tobacco products in the illicit trade in the United States....

The purpose of this publication is to provide information on figuring and claiming the deduction for business use of your home. The term "home" includes a house, apartment, condominium, mobile home, boat, or similar property which provides basic living accommodations. It also includes structures on the property, such as an unattached garage, studio, barn, or greenhouse. However, it does not include any part of your property used exclusively as a ho-tel, motel, inn, or similar establishment. Qualifying for a Deduction gives the requirements for qualifying to deduct expenses for the business...

Higher education is a critical mechanism for socioeconomic advancement among aspiring individuals and an important driver of economic mobility in our society. Moreover, a well-educated workforce is vital to our nation's future economic growth. American companies and businesses require a highly skilled workforce to meet the demands of today's increasingly competitive global economy. Higher education is provided through a complex public-private market, with many different individuals and institutions participating. While postsecondary education has become increasingly important, there have also...