On Wednesday, May 28, 2003, President Bush signed the Jobs & Growth Tax Relief Reconciliation Act of 2003 into law. It is currently estimated that this legislation will result in three hundred fifty billion dollars in tax relief. Many of these provisions are retroactive to May 6, 2003.
Here is a rundown of the major provisions of the legislation.
Accelerated tax relief for married couples The 2001 tax legislation promised relief from the marriage penalty, which taxes most dualincome couples at higher rates than if they were unmarried and filing as singles. The relief, however, was not scheduled to apply for most taxpayers until 2005.
The new tax act accelerates this relief. The standard deduction for married couples will be raised from the current $7,950 to $9,500 – twice the standard deduction for single taxpayers. Taxpayers who itemize deductions will not enjoy any benefits, but the majority of couples who take the standard deduction will save $155.