Section 207(1) of WFTRA
added the phrase "determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof" after "section 152" in Sec.
The proposed regulations would update the regulations to address several aspects of the dependency rules that were modified by WFTRA
. These include:
However, under WFTRA
2004 the standard deduction for married individuals filing jointly (and surviving spouses) is twice the amount (200%) of the standard deduction for unmarried individuals filing single returns for tax years beginning after December 31,2003.
An eligible foster child (placed with the taxpayer by an authorized placement agency or by a court) is included in the WFTRA
definition of a qualifying child [IRC section 152(f)(1)(C)].
(19) Before the WFTRA
, some junior military members who served in a CZ or QHDA were unable to take advantage of these tax credits because all of their pay was excluded from the definition of income for federal tax purposes.
deficits related to EGTRRA, JGTRRA, WFTRA
, TIPRA, PPA and TRHCA.
Prior to the WFTRA
, dependency exemptions were allowed for any individual who met five tests.
Intending to stimulate the economy and create new jobs, Congress passed the Working Families Tax Relief Act (WFTRA
) and the American Jobs Creation Act (AJCA) in 2004.
152(e) were again effected, this time by the Working Families Tax Relief Act of 2004 (WFTRA
) (5) and the Gulf Opportunity Zone Act of 2005 (GO Zone Act).
The Working Families Tax Relief Act of 2004 (WFTRA
) goes a long way in remedying this confusion by enacting a uniform definition of a qualifying child.
2004 extended the expanded 10% brackets through 2010 at the 2003 levels (i.e., $14,000 for married individuals filing jointly, $7,000 for single individuals), with annual indexing from 2003.
* Under the UDOC, as adopted in the WFTRA
, a qualifying child must satisfy the abode, relationship and age tests.