Rules for Maximizing Deductions to Lower Your Tax Bill

[MikeLigalig.com]

For the majority of Americans, the old rules for maximizing deductions to lower your tax bill for 2010 still apply. In 2010, workers can contribute up to $16,500 to employer-based retirement plans, and workers 50 and older can contribute up to $22,000. Anyone, regardless of income, can now convert a traditional retirement account to a Roth IRA, but only those who do so by Dec 31, 2010 will have the added benefit of splitting the tax bill on the conversion between their 2011 and 2012 tax returns. If you choose the split, the conversion will not increase your 2010 income. Meanwhile, Congress temporarily suspended required minimum distributions from IRAs and other retirement accounts until the stock market bounced back. The enhanced American Opportunity Credit for undergraduates also expires at the end of 2010. - source: Mary Beth Franklin. Kiplinger's Personal Finance. Washington: Dec 2010. Vol. 64, Iss. 12; pg. 1
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