With the scheduled 2011 expiration of the Bush-era tax cuts, many taxpayers were facing a potentially large federal tax increase in the new year. The late-2010 enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act (“2010 TRA”) generally extends those tax cuts for two years and provides additional relief for millions of taxpayers.

Following is a summary of the key provisions of the 2010 TRA. Much of the new law simply retains favorable tax rules that applied in prior years. Other provisions modify the old rules or introduce new tax breaks. We urge you to seek professional guidance before acting on anything you see in these highlights.