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Tax cuts, or hikes, for all

October 21, 2010

"Several tax cuts are slated to expire at the end of the year, which means that the lame-duck Congress will face several tough decisions come November. To hear campaigning lawmakers tell it, however, the only tax issue out there is whether to extend the Bush-era tax cuts for the rich. The debate and the work can't end there."

That's the assessment of pending tax legislation in One-Note Tax Debate, an editorial in today's New York Times.

As the opinion piece notes, Bush tax cuts and tax breaks in the 2009 Obama stimulus package are scheduled to expire at the end of 2010. If that happens, the changes will affect more than just rich folks.

That's also the premise of How expiring Bush tax cuts will affect you, an article I wrote for Bankrate earlier this week.

Expiring_tax_cuts_lower_income_taxpayers

As that story (actually a slide show) notes, "Representatives and Senators have focused on the rich and what the tax cuts mean to them. But here at Bankrate, we thought it worthwhile to give the rest of the taxpaying public some attention. Here's a look at what folks in lower-income brackets might face if the current tax cuts disappear."

So if you're rich, then by all means be concerned about how your taxes might look in a couple of months.

But if you're not rich, you need to make sure your situation is taken into account, too.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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