The end of the year is a great time to take some action to reduce you taxes for 2013. The following article has some good ideas for you to think about.
Tens of millions of Americans don’t even start thinking about their taxes until a few days before April 15. But if you’re interested in turning over less of your hard-earned money to Uncle Sam, it pays to start paying attention to your taxes before the end of the year. Doing so could add hundreds or even thousands of dollars to your tax refund.
Here are five things to do to uncover tax savings between now and New Year’s Eve.
1. Figure Out Where You Stand.
The first key to successful year-end tax planning is getting a rough estimate of your income and deductions for the year. Your pay stub should give you a good idea of year-to-date gross income, as well as 401(k) contributions, flexible spending account money, and other tax-saving items. For deductions, look at your checkbook or bank account statements to see what you’ve given to charity throughout the year, and consult with your mortgage lender about getting information on taxes and mortgage interest.
Once you have an idea of your total income and deductions, you can estimate your tax bracket and get an idea of whether you\’ll want to itemize deductions to get a bigger tax break. That will help you determine which of the following moves will save you the most.