Although you may be used to waiting until April to worry about your taxes, this could be a big mistake
North Highlands, CA (PRWEB) December 9, 2009
To help Americans prepare for tax season early, The Tax Lady Roni Deutch posted an informative blog entry with end of the year tax advice.
"Although you may be used to waiting until April to worry about your taxes, this could be a big mistake," asserted Deutch on her blog. "Many tax breaks are secured through actions taken before January 1st. And guess what - it is already December and the holidays are just a few weeks away! So, you need to take advantage of the post-Thanksgiving lull to get your tax situation in order to maximize your tax savings come next April. And as you can see from the following paragraphs, there are plenty of things you can do now to make the upcoming tax season a little less stressful--and a financially successful one."
Below are a handful of the tips Deutch published to her blog explaining how to plan ahead for tax season. To read the full article, you can check out Roni Deutch: The Tax Lady Blog.
1. Make Upgrades
If you were thinking about making energy efficient upgrades to your home, you may want to do so before the New Year. The deductions and credits available for energy efficient home upgrades are larger this year than they were in 2008, and it is unknown if Congress will extend or decrease those credits for 2010. For more information on this year's "Green" tax incentives, check out this entry that I posted earlier in the year.
2. Give Now
During the holiday season, most of us feel more charitable than usual. Most often, we tend to donate to toy drives for underprivileged children, or to charitable organizations standing in front of retail shops seeking spontaneous donations. However, this time of the year is also a great time to donate to non-profit charities. In most cases, you can make a monetary contribution, donate your used car, or donate unwanted clothes and other personal items. If you itemize your deductions when you file, then you can add to your deductions by making charitable contributions and reporting them on your return. Be sure to ask for a donation receipt when you make a charitable contribution so that you can substantiate your deductions if you ever need to.
3. Make 529 Plan Contributions to Pay for Future College Bills
If you have a child, then you might want to consider opening a 529 plan. If you already have a 529 plan, then you may want to max out your contributions. There are two different types of 529 plans, and both have significant tax benefits. Using any extra funds you have at the end of the year to contribute to your child's 529 plan is a great, tax friendly way to help prepare for your child's future. To learn more about the different 529 plans check out this RDTC Tax Help Blog entry.
4. Offset Large Capital Gains
If you have capital gains, then you may want to offset those gains by selling off a few bad investments or stocks. You can even claim a capital loss of up to $3,000. Any loss in excess of $3,000 will need to be carried forward to future tax years. If you are not experienced in how to report capital gains and losses, then you should seek the help of a qualified professional.
5. Make Non-Charitable Gifts
It is the season of giving, right? In addition to charitable contributions, you can also give up to $12,000 ($24,000 for a married couple) to as many individuals as you wish without incurring a gift tax penalty.
You can read the remaining end of the year tax tips by visiting the Roni Deutch: The Tax Lady Blog.
About Roni Deutch Tax Center:
Roni Deutch has built her reputation as one of the most successful tax lawyers through hard work and dedication to the needs of taxpayers. Her competitive spirit and insatiable work ethic have made her a household name with one out of three American adults knowing the name Roni Deutch. Through her years of practice, she saw that many of her clients' tax problems were caused by sloppy and unprofessional tax return preparation. Ms. Deutch decided it was time to put her experience to work for taxpayers across the country. Roni Deutch Tax Center is now filling the need for competent tax return preparation. In the February 2009 edition of the Entrepreneur Magazine, Roni Deutch Tax Center is in the top 2% of the fastest-growing franchises out of over 3,000 franchise concepts in the country. An affordable franchise opportunity, a Roni Deutch Tax Center franchisee can expect to invest between $30,633 (tax preparation business conversion) and $119,900 to open a tax center with the average investment being about $69,700 for one location.
The Tax Lady's Guide To Beating The IRS And Saving Big Bucks On Your Taxes
(BenBella Books, February 15, 2009, Paperback Price: $16.95, ISBN 978-1-933771-77-9)
Larry Miramontes, Vice President of Marketing
Roni Deutch Tax Center
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