Because we don't know for sure what our individual income tax rates might be or what we might owe on investment income or which tax breaks will be around in the coming year, there's a temptation to do nothing.
Despite the uncertainty and confusion, that's not a good idea.
I recently spoke with Gregory A. Rosica, tax partner with Ernst & Young in the firm's Tampa, Fla., office about just how we should proceed with what usually are cut-and-dried tax choices as Dec. 31 nears.
Rosica suggests taxpayers create two year-end tax strategies: one for the current tax situation and another in case the Bush-era tax laws do actually expire (and stay that way) next year.
"Develop a plan, and then pause and wait to see what transpires," he told me for a story I wrote for Bankrate.com.
You can see what Rosica and other tax experts suggest in that article, 6 smart year-end tax strategies to consider.
And while you're at it, drop your Representative and Senators a note or email or give them a call and let them know how you want the fiscal cliff situation resolved ASAP.
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