Year End Tax Tips: Part One
Are you searching for ways to keep your income taxes down? If so, you are in position to do this but time is running out. Generally speaking, all of the best moves need to be completed by the end of 2008. Are you in position to take advantage of any of the following ways of lowering your tax liability?
1. Pay extra on your mortgage. Although you may be caught up on your mortgage making an extra payment is a good idea. The interest that you pay will be added to this year’s total which in turn increases your deduction.
2. Make a charitable contribution. December is the time for giving, and if you make a charitable contribution this can work out in your favor as well. While most people find it easiest to donate cash, do not forget that you can do the same with other items such as clothes and household goods. Make sure you receive a receipt for your charitable donations.
3. Pay property taxes now. Will your 2009 property taxes be due early in the year? If so, you may want to make a payment in December of this year. Remember, real estate taxes are deductible and for many people this makes all the difference in the world.
4. Pay medical bills. In many cases you may be able to deduct medical bills, as well as health insurance premiums and prescription drugs. You might as well make payments this year so you can use them to your advantage when filing your final income tax return.
These four year end tax tips should help you keep your income taxes low. The question is: do any of the above meet your situation?
December 24th, 2008 at 9:16 am
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