A Roth IRA may generally accept a conversion from a traditional IRA (but for tax years beginning prior to 2010, modified adjusted gross income
cannot exceed $100,000).
The tax threshold has risen to $10,764 of adjusted gross income
for single and married filing separate taxpayers, and $21,527 for married filing joint, surviving spouse and head of household taxpayers.
For example, most single people under 65 years old with no dependents would not need to file a state return until they have adjusted gross income
of $11,698 or more.
The credit starts to phase out for taxpayers with adjusted gross incomes
of $75,000 and up.
The credit will be phased out for taxpayers with adjusted gross incomes
between $60,000 and $75,000.
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.
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.
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).