I was about to write a post on year-end tax preparation tips, but then I saw that so many other PF bloggers had beat me to it, so I figured that instead of spewing out the same stuff as them, I would highlight some of the best tips from other bloggers.
From Bible Money Matters, he has 10 tax credits and deductions to consider:
Increase your retirement account contributions: Max out the contributions to your 401k, 403(b) or IRA to lower your taxable income. With an IRA you can contribute up to$5,000, $6,000 if you are 50 or older. For a 401k or 403(b) the contribution limit is $16,500 , or 22,000 if you’re 50 or older.
Million Dollar Journey has a nice list of year-end tax tips as well.
Buy your Supplies for Home Improvements. If you’re planning on doing home improvements in the new year, try to purchase some of your before year end. Why? To take advantage of the home renovation tax credit (HRTC). There are rumors that the HRTC will be continuing in the new year, but even so, you might as well take advantage of any 2009 space you have available.
Darwin’s Finance also provides a list of 7 year-end tax tips to save you money!
Sell your losers in your investment portfolio – You can deduct up to $3,000 per year in losses and even carry over losses in excess of that amount. If you were fortunate enough to have significant gains, make sure you don’t get burnt by the Wash Sale Rule by buying the same or equivalent investment again quickly.