The more than 14 million filers who earn adjusted gross incomes
of $50,000-$74,999 while owning average investment assets of approximately $118,000 could on average increase their annual giving by 21%, from $1,322 to $1,600 per filer -- and under normal circumstances still see their wealth rise.
The credit will be phased out for taxpayers with adjusted gross incomes
between $60,000 and $75,000.
In addition, the credit is phased out for taxpayers with modified adjusted gross incomes
above $75,000, with full phase-out at $115,000.
The new laws create two tax credits for educational expenses -- the Hope Scholarship credit and the Lifetime Learning credit -- but these credits are only fully available to single income earners with adjusted gross incomes
of less than $40,000 and married couples filing jointly with adjusted gross incomes
of less than $80,000.
A FAMILY TAX CREDIT OF $500 for each qualifying child would be available to families with adjusted gross incomes
For 1993 returns, taxpayers (1) whose modified 1993 adjusted gross incomes
(AGIs) exceed their 1992 AGIs by more than $40,000 and (2) whose 1993 AGIs exceed $75,000 (subject to certain exceptions) cannot pay estimates based on last year's tax liability.
The phaseout of itemized deductions affects both married and single taxpayers with adjusted gross incomes
(AGIs) of $108,450 and above.
Taxpayers with current tax year adjusted gross incomes
over $75,000 and current year incomes more than $40,000 higher than the previous year's were singled out and, in effect, required to make estimated tax payments equal to 90% of the current year's tax liability.
President Clinton campaigned on a pledge to raise the marginal tax rate to 36% (from 31%) for married taxpayers with adjusted gross incomes
over $200,000 (for single taxpayers, the hurdle is $150,000).
This $25,000 limit is phased out for individuals with adjusted gross incomes
between $100,000 and $150,000.
Those reporting tax-exempt income comprised 7 percent of investors with adjusted gross incomes
between $50,000 and $74,999, 13 percent of those in the $75,000 and $99,999 category and only 22 percent of those in the $100,000 and $199,999 bracket.
The Renter's Credit is available for single filers with adjusted gross incomes
of $34,412 or less and joint filers with adjusted gross incomes
of $68,824 or less.