This article is a continuation of the last 2 blogs on tax planning for your 2009 tax saving. Act quickly to reap the most benefits—these strategies will be of no use after December 31.
- If you’re thinking of donating a used auto to charity, be sure to inquire whether the charity plans to sell the car or use it in its charitable activities; the latter may yield a bigger deduction.
- Consider making credit-eligible energy saving improvements to your home, such as adding extra insulation or energy-efficient windows, to qualify for a tax credit. The largest credits are available for geothermal and solar energy products.
- Thinking of buying a car? Do so before year end to assure a deduction for state sales and excise tax on the purchase.
- If you are receiving Social Security benefits, there are several steps you can take to reduce or eliminate tax on your benefits.
- If you are an employee, consider asking your employer to increase withholding of state and local taxes to pull the deduction of those taxes into this year.