Unresolved Tax Questions Worry Taxpayers

Federal Taxes Next Year

This leaves Americans with stocks or other assets to sell in a tricky situation.

The process of predicting your annual federal tax bill has been made all the more confusing by questions over what the tax code will look like in 2011.

(Getty Images)

Normally, McPherson said, financial advisors recommend that their clients delay such sales to the following tax year.

"As a general rule, the longer you can defer taxes the better, because the more money you're going to have in your pocket today... A dollar received today is worth more than dollar received tomorrow," McPherson said.

But waiting until next year could mean facing a higher tax rate.

"Why would you want to pay taxes at a higher rate this year if you can pay it at a lower rate this year? It turns the usual advice on its head," McPherson said.

Qualified Dividends: Own any dividend-yielding stocks? You could be in for some major sticker shock.

Labant said that the largest percentage increase in taxes could come in the form of qualified dividend taxes. The maximum tax rate is currently 15 percent but, if allowed to expire, would rise to the taxpayer's highest marginal income tax rate -- as high as 39.6 percent if the Bush income tax rate cuts also expire.

Itemized Deductions and Personal Exemptions: The Bush tax cuts lifted limits on how much high-income taxpayers could deduct for charitable contributions, mortgage interest and state and local taxes. The cuts also allowed, in 2010, for high-income taxpayers to be eligible for the same personal exemptions as other lower-earning Americans.

Related

FULL EPISODE: GMA: Deanna Favre and Faith

WATCH: Chris Coons on Bush Tax Cuts

WATCH: GMA Quick Tips: Taxes

In 2011, the deduction limits could be reinstated and the exemption "is set to expire in that it starts to get reduced based on your income," Labant said.

Alternative Minimum Tax: Originally established to limit tax breaks for the country's wealthiest taxpayers, the Alternative Minimum Tax, which is not indexed to inflation, is now increasingly ensnaring the middle class. In recent years, Congress has passed annual fixes that increased the amount of income exempt from the AMT, but has yet to do so this year.

Without a fix, 29 million Americans are expected to owe taxes under the AMT this year, according to the Congressional Budget Office.

Estate Tax: Thanks to a Congressional deadlock last year, 2010 is a year free of estate taxes. They are scheduled, however, to return in 2011, with all estates valued above $1 million to be subject to a maximum tax rate of 55 percent. In 2009, the estate tax exemption was $3.5 million. The Obama administration is pushing for a return to that exemption instead of the $1 million threshold.

Labant said that people are often surprised to learn that their assets might be worth more than $1 million, making their estates vulnerable to the tax after death.

"Maybe you don't have liquid assets or investments worth one million dollars, but how much is your house worth? How much is your jewelry worth? Your weekend place? Your insurance?" she said. "Sometimes people are worth more dead than alive and when you add up all those assets you may be worth more than $1 million."