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Save money and reduce your IRS Tax Tips Singles Year End

10 things to taxpayers prior to December 31, 2008, to reduce tax due on the bill April 15, 2009

In this struggling economy, planning tax has never been greater, and small businesses and individuals can engage in cutting taxes now, before the end of the year. It was a bad year for many, it is essential to use financial strategies that can help mitigate the increase potential of the IRS and to minimize tax liabilities. What I do as a tax specialist in the resolution is to reduce the debt of a client IRS, which is focused on delivering financial planning in the opposite direction. So I know how important it is for people to know their rights the taxpayer in the first place so they can avoid trouble and tax savings.

For 2008, income and warned Management deduction can help taxpayers get the best of a bad year. People also want to consider maximizing contributions annual accounts retirement plan, using capital losses to offset long-term capital gains in the long term, and taking advantage of popular tax breaks extended 2008. These days, nobody can know with certainty what their future income will be like or what direction the markets will take. More tax rules may change, especially with a new presidential administration and new Congress. Therefore, the general rule is that loans are now more than you, the less you'll probably have more later, when the tax comes.

So get ready for 2008 Taxation prepared these tips simple tax can help reduce stress and save money.

1. Accelerate your deductions in 2008. You want to call your bouquet mainly deductible expenses in 2008 if you can. For example, if you make payments to the estimated state income tax, you can do on December 31 so you get the deduction (on your federal return) in 2008. You can also charge these costs on your credit card (s) in 2008, to receive the deduction in 2008, even though you will not pay for them until 2009.

2. Differ Income in 2009 so that you do not pay taxes on it in 2008. If you're self-employed or an independent contractor (as a carpenter, electrician, plumber, a psychologist, psychiatrist, chiropractor, doctor, etc.) that you can now do the work in 2008, but not send invoices to your customers January 1, 2009. This is perfectly legitimate and that you will not have to pay taxes on that income until you receive the payment in 2009.

3. File your return on time even if you do not have the money to pay your tax bill. If you can not pay your taxes you can still file your return on time and save 25% on the penalty for failure from the start. What many people do not understand is that filing an extension is just off the inevitable, because this is not an extension of the deadline for payment is just an extension to the deadline.

4. Accelerate your medical expenses. If you itemize your deductions, there is a limitation on medical expenses and you can deduct only the amount by which your medical expenses for the year exceed 7.5% of your adjusted gross income. So if you have any medical procedures or dental procedures that you put off, the time has come for them to do. You do not necessarily pay for, you can put on a credit card and just pay the minimum balance on a credit card, but you can take the full deduction of the year she occurred.

5. You pay an additional one month of the mortgage. Make your January mortgage payment in December, so you get may deduct that interest in 2008.

6. Pay your property taxes early. Pay your property taxes that are due 2009 by the last day of 2008 to accelerate the deduction.

7. The long-term capital losses can be used to compensate capital gains in the long term. If you had earnings at the beginning of the year and losses now, you can use those losses to offset gains. If have more losses than gains they can be used to offset ordinary income of 300 per year. Please keep in mind that latent (non actually sold) losses, particularly in retirement accounts are not deductible.

8. Use gift contributions to reduce your tax. In terms of donations, you can transfer up to $ 12K per person per year without paying gift tax on the transfer amount. If you married a grandparent, they can give $ 24K per person by dividing it fist. In 2009, amounting to $ 13K exclusion each. Seniors over 70 1 / 2 can contribute up to $ 100,000 from their retirement accounts to a charity of their choice without paying tax on that income.

9. to maximize the annual contribution to retirement plan accounts. This is important because the three-year limit can not be added the following year if not taken in time. Now, contributions to IRA can be applied retroactively if it is made before the filing deadline and the contribution to an individual's choice. Like many owners plan account have performed in 2008, is that managing a retirement account tax preference is not a game "and forget it." Now in 2008, you can deduct up $ 15,500 per person. If you are 55 and over, I think goes to $ 20k and you can have arrays of different investments in your 401K. As individual you can choose the type of asset allocation or risk you want.

10. Take advantage of tax benefits. The Stabilization Act economic emergency of 2008 includes tax breaks that can offer a little more help than the U.S. average. Many of the provisions extend tax breaks that expired at the end of 2007. Some of popular tax breaks provide opportunities for the deduction of tuition, extended radiation for sales taxes, assistance to disaster victims and relief alternative minimum tax.

For further advice and information on reducing your debt IRS www.taxresolution.com visit for a free consultation call for tax reductions or 866-477-7762.

About the Author

Michael Rozbruch is one of the nation’s leading tax experts. A Certified Tax Resolution Specialist (CTRS), licensed CPA and the founder of Tax Resolution Services. He helps individuals and small businesses solve their IRS problems and is dedicated to educating the public on tax planning and other strategies for managing their personal and business finances.

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