President Obama takes to Twitter to chat about the impending fiscal cliff
Tax Carnival #109: Tax Stocking Stuffers

Extra year-end tax move considerations in 2012 as the fiscal cliff looms

Thank you lawmakers in Washington, D.C., for complicating our 2012 year-end tax decisions.

Frustrated-taxpayer-Ken_Hurst_iStock_000006713208XSmallAnd by thank you I mean get off your partisan duffs and decide already what to do about the fiscal cliff so we can make informed tax moves before it's too late!

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.

Frustrated taxpayer photo by Ken Hurst/iStock

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