Big tax changes are coming in 2011 as many rules are set to expire. A few to be aware of:
Prepare for tax hikes. Based on current laws, many tax rates will go up in 2011 (although that could change, depending on what the new Congress does). Still, experts say you may want to plan ahead for the higher ratesby accelerating income now, and postponing deductions until 2011, depending on your situation. More info here. Pay those estimated taxes. A provision that allowed self-employed folks to fudge a little on their estimated payments during the tax year without incurring a penalty has expired. If you've been skimping on your quarterlies, square everything away by the Jan. 15 installment so that 100% of your bill is paid. Here are some other tax changes affecting the self-employed. Budget for kid-related expenses. The child and dependent care tax credit will drop in 2011—from $3,000 in day care expenses for one child, $6,000 for two (up to 35% of costs), down to $2,400 and $4,800 respectively, with a 30% cap. Also, the child tax credit is being cut from $1,000 to $500.
Vote Your Heart Out
The 19th Amendment granting women the right to vote wasn't passed until 1920—just 90 years ago. Think of what we've accomplished in that relatively short span. Think of what lies ahead. Now get out and vote.
Vote on it. What are your hopes this election day?