Looking ahead to 2010

2010 Census We’ll get a fresh look at U.S. demographics with the 2010 Census, which will count same-sex couples for the first time. The Census results influence Congressional districts and funds going to government-funded services like schools. As a side benefit, new census readers will mean an injection of about 1.2 million temporary jobs into the economy. The Year of the Tiger No, not that Tiger! (For good or bad, 2009 was his year.) Rather, the 2010 Year of the Tiger refers to the Chinese New Year, which begins on February 14 (it changes each year based on the moon). The tiger is one of 12 animals associated with the Chinese lunar calendar, with each bringing certain characteristics to the year. Think courage in the year of the Tiger. Estate tax Unless you fall into the 0.2% of America’s wealthiest people, this won’t apply to you, but you’ll hear a lot about it in the news. In a nutshell, prior to 2010, big estates were subject to an estate tax of 45% on assets above $3.5 million. But after nine years of phasing out the tax under a law passed by Congress in 2001, the estate tax—or “death tax” as Republicans like to call it—completely disappears. The Wall Street Journal reports some wealthy Americans were clinging to life to avoid the taxes by passing away in 2010. The reprieve only lasts a year. In 2011, the tax increases to 55% on assets over $1 million. Congress will likely take up the issue in 2010. Roth IRA conversions

Another interesting personal finance change: In 2010, regardless of your income, you can convert a traditional IRA (contributions are tax deductible under certain income levels but distributions are taxable) into a Roth IRA (contributions are not tax deductible but can be withdrawn tax-free any time and earnings can be withdrawn tax-free after age 59-and-a-half). Before the New Year you could not convert if your modified adjusted gross income was over $100,000. If you convert in 2010, the IRS will allow you to pay half of the taxes in 2011 and the rest in 2012. Converted funds are eligible for tax-free withdrawal after five years.

Health care
You can expect Congress to tackle merging the House and Senate health bills in early January, with a possible vote before the President’s State of the Union Speech. Many of the sticking points in the two versions—a public option, abortion, Medicare changes—will come to a head in designing a final bill. And while reform is likely in 2010, proposed changes might not begin for years.

More credit card protections
Starting in February, credit card companies won’t be able to raise interest rates on balances unless they are over 60 days overdue, and people under 21 will need a co-signer for a card under new rules passed by the Credit CARD Act of 2009.

It's time for the Winter Olympics!
Skiing, curling—all the favorites—will be on display in Vancouver, Canada from February 12 to 28. At the moment, non-stop tickets from New York and Chicago will run you about $1,000 and the hotel costs—forget about it. Best Western? Averaging $686 per night! Several hundred thousand visitors are expected in Vancouver during the games.

Let the campaigning begin!
November 2010 brings mid-term Congressional elections. The entire House of Representatives and over a third of the Senate is up for election. Most polls show Republicans with the advantage.