There's a lot you can be doing now to reduce the taxes you pay next year, based on tax changes for 2011. But did you know it's not too late to reduce the taxes you pay this year, when you file your 2010 return? Here are five changes affecting exclusions, deductions, credits or other tax breaks to help you slash your tax bill for 2010.

1. Inflation Adjustments. While inflation has been low, there have still been some increases to tax brackets. This means you were able to earn more in 2010 than in 2009 without being pushed into a higher tax bracket for 2010.

There have also been adjustments to various income limits on eligibility to claim certain exclusions, deductions and tax credits. For example, the income limits have been adjusted for the retirement savers credit, the exclusion for interest on U.S. savings bonds redeemed for higher education and the earned income credit. Just because you didn't qualify on last year's return doesn't mean you won't qualify in 2010.

• 10% on taxable income between $0 and $8,375
• 15% on taxable income between $8,376 and $34,000
• 25% on taxable income between $34,001 and $82,400
• 28% on taxable income between $82,401 and $171,850
• 33% on taxable income between $171,851 and $373,650
• 35% on taxable income over $373,651

• 10% on taxable income between $0 and $16,750
• 15% on taxable income between $16,751 and $68,000
• 25% on taxable income between $68,001 and $137,300
• 28% on taxable income between $137,301 and $209,250
• 33% on taxable income between $209,251 and $373,650
• 35% on taxable income over $373,651

• 10% on taxable income between $0 and $11,950
• 15% on taxable income between $11,951 and $45,550
• 25% on taxable income between $45,551 and $117,650
• 28% on taxable income between $117,651 and $190,550
• 33% on taxable income between $190,551 and $373,650
• 35% on taxable income over $373,651

• 10% on taxable income between $0 and $8,375
• 15% on taxable income between $8,376 and $34,000
• 25% on taxable income between $34,001 and $68,650
• 28% on taxable income between $68,651 and $104,625
• 33% on taxable income between $104,626 and $186,825
• 35% on taxable income over $186,826

2. Extended Tax Breaks. Dozens of important tax breaks that expired at the end of 2009 have been extended for 2010. These include the above-the-line deductions for tuition and fees and the $250 educator deduction, the option to deduct state and local sales taxes instead of state and local income taxes for those who itemize, and the deduction for mortgage insurance premiums.

Because Congress did not okay these extensions until late in 2010, the IRS needs more time to adapt their systems. Taxpayers claiming these above-the-line deductions or who itemize their personal deductions cannot e-file before February 14.

Note: Not all expired rules were extended. Don't look for these 2009 breaks on your 2010 return: an additional standard deduction for real estate taxes and net disaster losses, an exclusion from income for some unemployment benefits, and a sales tax deduction on new car purchases.

Even though the IRS officially declared tax season open, millions of taxpayers weren't sure when they would be able to file their returns because of the last minute tax deal. Now the IRS has declared Feb. 14 -- Valentine's Day -- as the start date for processing tax returns.

Beginning then, the IRS will begin processing paper and e-filed federal income tax returns for taxpayers claiming itemized deductions on Schedule A, the higher education tuition and fees deduction on federal form 8917, and the educator expenses deduction. Before that date, those taxpayers may prepare their returns, but the IRS will not accept or process them.

Early estimates were that as many as 50 million taxpayers could be affected by the delay, but the IRS now estimates that the number is closer to 9 million. The revised number is based on the timing of similar tax returns filed by mid-February 2010.

Taxpayers who aren't affected by the delay -- largely, those who do not itemize their deductions -- constitute the largest percentage of taxpayers. Those taxpayers may begin filing their returns immediately.

Many tax software packages, including those sold by TurboTax and H&R Block, have announced that they will prepare any affected returns immediately and hold the returns until the Feb. 14 processing date. Many paid preparers will similarly hold your return for you -- be sure to ask upfront if this is something you're concerned about. If your software package or preparer doesn't offer this service, you can still begin preparing your return, but you'll need to wait until Feb. 14 to send your return to the IRS.

The IRS delayed the processing dates because it needed the extra time to update its systems after Congress pushed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 through at year's end. As a result of the new law, a number of tax provisions that had previously expired at the end of 2009 were renewed -- in the nick of time -- for 2010. Ultimately, that's a good thing for taxpayers -- even if it does mean a little bit of a wait.
3. Deferral for Roth IRA Conversion Income. If you converted a traditional IRA to a Roth IRA in 2010, you can automatically defer half of the income from the conversion to 2011 and half to 2012 by not reporting the income on your return. However, if you want to include the income in 2010 -- because it can be offset by a net operating loss or for some other reason -- you can choose to do so.

4. No Phase-Outs for High-Income Taxpayers. In the past, if your income exceeded certain limits, your personal exemptions and itemized deductions were reduced. In 2010, there is no such reduction, so you can enjoy all of the write-offs you're entitled to.

5. Alternative Minimum Tax (AMT) Relief. The AMT exemption for 2010 is increased to $72,450 for taxpayers filing jointly, $47,450 for single taxpayers and those filing as head of households, and $36,225 for married couples filing separately; this keeps more taxpayers from having to pay this tax. What's more, nonrefundable personal credits -- such as the dependent care credit, the credit for buying a hybrid car and the home energy property credit -- can be used to offset not only regular tax but also the AMT.

If, for any reason, you can't file your 2010 by April 18, 2011, just ask for a filing extension to avoid late filing penalties. This will give you until Oct. 17, 2011, to file the return and avoid late-filing penalties. Use IRS Form 4868, which can be filed electronically or by paper. But the filing extension does not give you more time to pay your taxes, so pay as much as you think you'll owe.

Barbara Weltman is an attorney and author of books such as J.K. Lasser's 1001 Deductions and Tax Breaks and The Complete Idiot's Guide to Starting a Home-Based Business. She is also the publisher of Idea of the Day®and monthly e-newsletter Big Ideas for Small Business® at www.barbaraweltman.com and host of Build Your Business radio. Follow her on Twitter, @BarbaraWeltman