Tax saving tips

[FinanciallyFit]

I'm gathering a laundry list of tax saving tips people can start to initiate for the 2011 tax year. I'm looking for creative, lesser-known ideas. Anyone care to share? Thanks!

[feh]

Bunch tax deductions, especially if you would otherwise need to take the standard deduction.

For example, we pay our property taxes twice in one calendar year, none the next, twice the year after that, etc.

[jimmyrules712]

Originally Posted by feh

Bunch tax deductions, especially if you would otherwise need to take the standard deduction.

For example, we pay our property taxes twice in one calendar year, none the next, twice the year after that, etc.

So the year you pay twice are you paying for the current year and the next year in advance? Do all states alllow this?

[feh]

Originally Posted by jimmyrules712

So the year you pay twice are you paying for the current year and the next year in advance? Do all states alllow this?

We get our prop tax bill in December, but it isn't due until the end of January. So, if I pay it before the end of December, it's a deduction for the "previous" year. The next year, I wait until January to pay.

This is in Wisconsin; not sure about other states.

[Michael01]

Tax-savings opportunities are much brighter for parents of children. The Child Tax Credit allows you to reduce the federal income tax you owe by up to $1,000 or each qualifying child under age 17.

[Shewillbemine]

Hire a smart, creative accountant.

/thread

[khriscoslay]

Declare your losses in tax return to save tax in future.

[snshijuptr]

As benefits election time is upon us, sign up for Flexible Spending Accounts, both Medical and Dependent care! This lowers your taxable income like a 401k though the money expires if unused by the end of the year. If your uncertain about your upcoming expenses, only put a little away. If you have a PPO it's smart to put away the value of your deductible. Additionally put away the cost of any regular prescription medications. Dependent care FSAs let you pay for childcare with pre-tax money. If you are lucky enough to have an HSA which never expires, then round up your expected medical expenses.

[Smith.Johnson]

For saving tax, u can invest your money in investment plans, that are given below
* ELSS - It is instrument sold by mutual funds to taxpayers for saving tax
* Life Insurance Premium - invest life insurance policy, which give higher return and tax benefit
* Fixed Deposit : Fixed deposits plan for more than 5 years provided by banks

In market, there are many tax saving bonds are provided reputed companies. You can try that also.

[jpg7n16]

Originally Posted by Shewillbemine

Hire a smart, creative accountant.

/thread

Agreed. Or TurboTax. Let the preparer/software catch the questions you don't know to ask.



As an added bonus for following this advice:

From: Publication 529 (2010), Miscellaneous Deductions

Tax Preparation Fees
You can usually deduct tax preparation fees on the return for the year in which you pay them. Thus, on your 2010 return, you can deduct fees paid in 2010 for preparing your 2009 return. These fees include the cost of tax preparation software programs and tax publications. They also include any fee you paid for electronic filing of your return. See Tax preparation fees under How To Report, later.