Taxes might be a sure thing, but the rules offer some wiggle room. Right now, many tax laws are slated to change or sunset in 2011. Stay tuned for many changes and adjustments to current laws. Congress will need to raise money for a variety of big-ticket items in the future. Baby boomers drawing on social security, Medicare for the elderly, health care costs for everyone, military efforts, and reducing the deficit will all need to be paid for.

Currently on the Radar Screen

A number of tax rule changes are looming. Congress has looked at changing taxes on capital gains and adjusting the income tax brackets. There will be changes in the AMT and estate tax limits. New credits related to energy saving and alternative energy devices are on the agenda. Many deductions and exemptions that are already increasing with inflation are affected by rules that change in 2011. Make sure to stay on top of the laws defining how much you can put in your 401(k), 403(b), IRA, or other retirement plan each year. Retirement plan contribution limits are increasing in order to encourage saving. Contributions to many retirement accounts are deductible; make sure you take advantage of increased contribution allowances.

Where to Check for New Info

The most reliable source of tax information is the IRS website and your home state government website. The IRS site, especially the Newsroom link, is helpful, but even though it has been improved, it can still be dense reading. Use popular magazines and websites for tips (there's a list of them in Appendix B) and to see what's new, then come back and double check the IRS site and your state site to be sure you understand the rule or strategy correctly. Journalists can make mistakes, and ultimately, you are responsible for the accuracy of your own tax return.