This publication highlights many tax law changes that take effect
in 1998 and 1999, but you will only find the 1998 changes here in this
section. The changes that do not take effect until the 1999 tax year are
in another file. Click here if you want to review
the 1999 changes.
Tax legislation. Many of the provisions
of the Taxpayer Relief Act of 1997, the IRS Restructuring and Reform Act
of 1998, and the Tax and Trade Relief Act of 1998 are discussed in this
publication. They include the following items.
- A child tax credit for each qualifying child under age 17.
- Two credits for qualifying higher education costs.
- Repeal of the 18-month holding period for capital gains.
- Expanded protection for an innocent spouse.
- Increased taxpayer rights in dealing with the IRS.
- A new income averaging for farmers.
- New rules for business use of the home.
- Increase in the health insurance deduction for the self-employed.
- Technical corrections that affect the new Education and Roth IRAs.
See the later discussion of each topic for more information.
Adjusting your withholding or estimated tax
payments for 1999. If there will be a significant change (increase
or decrease) in the tax you owe for 1999, you should adjust your withholding
or estimated tax payments accordingly. By adjusting your withholding or
estimated tax payments now, you can get the benefit of lower taxes throughout
the year. If you will owe more tax, you can avoid a penalty when you file
your tax return.
See the following table for forms and publications that will help
you adjust your withholding or estimated tax payments.
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