The tax breaks we've been enjoying for almost a decade are set to expire at the end of the year.
Although some of the provisions, such as the 10 percent tax bracket and the $1,000 child tax credit, have a good chance of living beyond 2010, some taxpayers will likely owe Uncle Sam more money next year.
This is particularly true if you're in the highest tax bracket, scheduled to go from 35 percent to 39.6 percent. Also slated to increase are the tax rates on capital gains, currently at 15 percent for most investors.
You're especially vulnerable if you make more than $250,000. That's the earnings level at which most Washington, D.C.-watchers expect 2011 tax increases to kick in.
The best move for wealthier individuals is to accelerate income into this year so you'll owe taxes on the money at today's lower tax rates.
Talk to your employer about moving any bonuses or commissions into 2010.
It's also is an ideal time to cash in some long-term winners in your portfolio so you can take advantage of today's lower capital gains tax rates, says Jim Keller, senior tax analyst for the Tax & Accounting business of Thomson Reuters.