Year End Tax Saving Tips for Tax Year 2011
So folks, we are down to the wire, we are 2 weeks from the end of the year, and maybe saving on your income taxes is not foremost on your mind, there are probably thoughts of family, holiday dinners, gift giving - as it should be, but you may also want to devote some time to make sure that you have taken steps to reduce your tax liability as much as you can, of course, legally. As a reader of this personal finance blog over the years, you are familiar with the year-end reminders to do all you can to legally reduce your tax liability. This year I am going to point you to a number of columns with that information.
Sandra Block in a USA Today column talks about - weatherization, college tuition credits, deferring income, accelerating deductions, charitable contributions and taking advantage of sales tax particularly if you are in a state with no state income tax.To see which consumer energy efficiency credits apply for the tax year 2011, click here.
Here is an article on CBS Money Watch which talks about the mortgage insurance deduction, enhanced adoption credits, educator expenses adjustment, plus 9 other tax tips."The TaxLady" blog has some tax tips on vehicles here.
Bill Lynott, freelance writer, gives some additional advice on saving on your taxes here and there is also a link to Part 1 of his post.The Small Business Administration (SBA) has these tax saving tips for small businesses, and YAHOO Finance also has these small business tips.
If you are a small business owner and thinking of starting a 401K for your business, Stuart Robertson in a Forbes article has some ideas here.Rande Spiegelman, Vice President of Financial Planning, Schwab Center for Financial Research has a host of tips that could apply to you here, from double checking your income records, tax-preferred education savings programs, to ways to gift without incurring the gift tax.
I quote directly from Rande here, because it is also my belief and practice, " After you decide what to do this year, resolve to make financial planning a year-round exercise going forward (you've probably got better things to do around the holidays). That way, it'll be easier to check your progress, update your plan and, if necessary, take action long before the ball falls in Times Square on New Year's Eve."And remember as you locate your documentation to support your tax deductions, start cleaning out and archiving your 2011 information and set up your folders for 2012 - this way you will start the year off right, yep, I know, you say you will every year, this year you are actually going to do it, yeah!!!
Season's Greetings and a Prosperous New Year to everyone.
"No matter who you are, making informed decisions about what you do with your money, will help build a more stable financial future for you and your family." Alan Greenspan