JOB CREATION AND WORKER ASSISTANCE ACT OF 2002
New economic stimulus law affects 2001 income tax returns

President Bush signed the Job Creation and Worker Assistance Act of 2002 into law on March 9, 2002. This law extends unemployment benefits, provides investment incentives, and reinstates several tax breaks that expired at the end of 2001. Since many of its provisions are retroactive to last year, this law could affect your 2001 income tax return.

The law includes:

* A new 30% depreciation bonus for businesses.

* A higher first-year depreciation limit for luxury autos.

* An expanded net operating loss carryback period for both individuals and businesses.

* An extension for several tax credits that expired at the end of 2001.

* Tax breaks for businesses in the lower Manhattan area affected by the September 11 attacks.

* A limited above-the-line deduction for teachers who buy classroom supplies.

* A 13-week extension of unemployment benefits for workers who live in states with an unemployment rate of at least 4%.

If you've already filed your 2001 return, you may need to amend your tax return to take advantage of these new tax breaks. For details about the new tax law, call us. We are here to help.

We can be reached at (781)453-8700.