Five reasons for parents to celebrate: introducing new tax benefits for kids

Over the next 10 years, there will be substantial changes in tax laws as they relate to children, thanks to some key provisions of the tax bill that became law in May 2001: The Economic Growth and Tax Relief Reconciliation Act of 2001, Title 11. Like all other facets of the new law, these provisions will expire over time, unless they are renewed or made permanent before 2011. In the meantime, it would behoove taxpayers to familiarize themselves with the new law and even ask a couple of questions. For example: How and when will families be impacted by the changes? Will everyone benefit? This article will examine these issues and much more - in an attempt to compare tax treatments currently available to families with the effect the new provisions could have on a family's tax liability.