The end of the year is almost here and it is nearly time to close the financial books on 2009. Tax experts say, before December 31st, you may want to consider some of the tax tips below to insure you don’t pay more than you truly owe this year.
¢ Make sure your name matches on all documents. Mismatched information can lead to delays or errors on your tax returns. If you have married, divorced or had a name change for any reason this year, insure your name is correct on your employers W-2 and file an update with the Social Security Administration.
¢ Consider maxing out your retirement contributions. If you can’t contribute as much as you would like before the year’s end, check into the deadlines for making contributions to your accounts. Some accounts may allow for contributions beyond December 31, 2009, that will count on your 2009 taxes.
¢ Already contributing to a 401K through work? See if you are eligible to also contribute to a Roth IRA. Contributions are sometimes allowable under certain income limits set by the IRS. You may not receive a tax deduction for these earnings, but the earning will be tax free.
¢ Tally your medical expenses. Expenses that exceed 7.5% of your adjusted gross income are eligible for deduction.
¢ If you are itemizing, consider charitable giving. In most cases, the 50% limit applies, meaning that your donations to charitable contributions can provide up to a 50% deduction on your adjusted gross income for the year. You can ask any organization if they are a 50% limit organization and most will be able to tell you, or you may check IRS publication 78 to verify. For all donations, keep a receipt from the charitable organization and/or bank record with your tax documents.
For additional tax questions, qualifications or publications, visit www.irs.gov .
For answers specific to your personal finance needs, consider contacting a tax professional. Your BBB can provide Reliability Reports for these or any business at www.evansville.bbb.org.