Wednesday December 21. TaxACT Tax
Tips. I
used TaxACT the last two years and was able to do pretty well I thought. All
the tax agencies are giving year-end tax-cutting tips for 2011. What they are
forgetting is that most of us did not make any money in 2011!. The fact is that
if your income is low this year, and you expect to make more in 2012, then you
should do exactly the opposite of what they recommend. And thus it goes with
tax planning.
- Go green: This is the
last month homeowners can qualify for a 10% credit on their 2011 tax
return for making energy efficient improvements.
- Prepay Spring
tuition:
A taxpayer can receive up to $2,500 on college tuition and books for each
qualifying student through the American Opportunity Credit.
- Make any big
purchases by 12/31 if you live in a state with income tax: The
deduction for state sales tax is set to expire this year unless Congress
votes to extend it.
- Use up your
Flexible Spending Account (FSA): If you still have money left in your
FSA, don't let it go to waste.
- Make
charitable contributions: Donating clothing & household goods
by Dec. 31 for a deduction on your 2011 return. Donation Assistant in
Deluxe provides fair market values & calculates the deduction.
- Accelerate
payments that can provide tax deductions: You can
claim the interest or real estate tax deduction in 2011 if you prepay your
January 2012 mortgage or property tax bill by Dec. 31, 2011.
- Pay
deductible expenses by credit card: If you charge expenses by Dec. 31, you
can deduct them on your 2011 taxes even if you don't pay the credit card
bill until January.
- Postpone
income:
If you can defer your income from 2011 into 2012, the income won't apply
to your 2011 taxes. But note: you can't defer income by not depositing a
check that was issued in 2011.
- Offset
capital gains:
If you have any investments that have generated deductible losses, you can
use the losses of those you sell through the end of the year to offset any
gains.
- Use
TaxACT Online 2011 return now for help with the above situations and
other year-end planning tips to help you maximize your refund. Sign
in now
to start today.
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