Probably dumb ... but a tax question

[zebra15]

I dont want to start a political debate here but there has been ALOT of talk lately about the possibility of changes to the tax law. Assuming these changes take place would they affect the filing of 2010 taxes(filed 4/15/2011) or 2011 taxes (filed 4/15/2012).

My brain is a bit cloudly right now and I need to start planning for some financial changes.

Here is some info
http://www.smartmoney.com/personal-f...ts-affect-you/

Velochich do you know??

[Kyamo]

I believe it would only affect 2011 taxes (filed in 2012).

[mama1803]

2011 taxes filed in 2012.

If the tax cuts expire at the end of this year, the amount withheld from your paycheck would increase beginning in Jan. 2011.

[velochic]

Not to get political, but the source is rather conservatively-minded and favorably reflects that financial attitude. I think the tax cuts for the lower tax brackets are not as desperate as the article makes it sound. The biggest impact for middle class is going to be taxable investments. Really, this affects the wealthy. I think if you need to make any adjustments next year, there are going to be minimal, unless you are in the top two tax brackets. It will probably be a moot point, though, as I don't think this current administration will negatively affect the lower tax brackets. It may mean a new plan introduced this year, but I don't think they will allow tax increases except of the wealthy.

[Vaske]

The article doesn't mention the child tax credit, which I think is also going to go back down to $500 per child (currently it is $1000 per child). That would impact a lot of people.