Everyone wants to know what their tax bill is going to look like next year. As of right now it seems very likely that your tax bill will be higher next year, even if you stay in the same tax bracket.
The Bush tax cuts involved more than just marginal tax rates. They included many deductions and credits that helped to reduce taxes for people in every bracket.
There are currently a lot of different ideas for the Bush tax cuts floating around Congress. As of right now, they are all set to expire at the end of this year. However, there is a chance that at least part of the Bush tax cuts could be extended into next year. Many in Congress are calling for this to happen. But there are many others who want to let them expire. So we’ll just have to wait and see what happens.
I found a great website that will show you what your new tax bill could look like in 2011. It shows you a side-by-side comparison of your 2011 tax bill under the following three scenarios: 1. Bush cuts expire. 2. Bush cuts extended. 3. Congressional Democrats plan. It’s pretty interesting: www.mytaxburden.org
I would welcome your questions or comments below.
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