I received an email from my CPA that he sent as an alert to his clients for tax-planning purposes. The email included an attachment with his analysis of proposed changes being discussed in D.C. that will impact our financial well-being starting Jan 2011.
There were two components to his analysis. One was the impact of allowing what is called the “Bush Tax Credits” to expire the end of 2010. The other was the tax implications of the Health Care Reform Bill. The two events, when combined, will increase our taxes beginning Jan 2011. All of us will be impacted, not just those earning over $250,000 as the politicians say.
I would like to share the details with you but the email is proprietary – only for the CPA’s clients. However, suffice it to say that all tax brackets will see an increase to the tax rate. Deductions for dependants will be cut in half. There are other such changes that will affect middle-America and all age-groups.
I encourage you to discuss these two issues with your tax-preparer in order to evaluate the steps you may want to take now to plan for the 2011 hit to your wallet if these issues go into effect. It’s difficult for ordinary citizens to sort through IRS forms trying to make sense of the potential impact, so relying on professionals is necessary. Talk to your accountant or CPA or financial planner. Don’t say I didn’t warn you! 🙂