Economic Growth And Tax Relief Reconciliation Act Of 2001

The economic growth and tax relief reconciliation act of 2001 was a piece of legislation that made many tax changes. Since many changes were made, they are difficult to understand as a whole, however, listed below are the changes that affected most people.

Rebate Checks

The most memorable part of this tax act was the rebate check that everyone received. Single taxpayers with no dependants received $300, $500 went to single parents, and married couples received $600. The rebates were filed automatically for all taxpayers, so no additional paperwork was involved.

Income Tax

This act also adjusted the rates of income tax. New brackets were created. A lower bracket of 10% was added for those who made less than $6000 or families who made less than $10,000. Some of the higher brackets were placed in the new lower bracket. This was supposed to help families who were already struggling not have to meet the extra expense of higher taxes.

Gift Tax Rules

This legislation also changed the rules that applied to estate and gift tax. The percentage of taxes paid on gifts or estates was lowered, and the maximum amounts were capped. This allowed people to decrease the amount of money they had to pay on inheritances and other gifts.