Tax Planning After the Job Creation and Worker Assistance Act of 2002

Abstract:     
President Bush signed into law on March 9, 2002, the Job Creation and Worker Assistance Act of 2002. The 2002 Act includes both business and individual tax provisions along with special relief provisions for lower-Manhattan affected by the September 2002 terrorist attacks. There are also extension provisions for expired or nearly expired tax breaks and technical corrections to the 2001 Act included in the new tax law. The new law includes an additional 13 weeks of unemployment benefits for residents of all states who have used up their regular unemployment benefits. There is an additional 13 weeks of benefits available for unemployed workers in states with high unemployment rates. These temporary special benefits will end on December 28, 2002. This article explains these new provisions and provides tax-planning strategies arising from the new law.

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