20101210

10 Tax Tips to help reduce your tax burden

Here are some tips that you may be able to implement before the end of the year to help you save some money.


  1. Max out your retirement accounts — and consider a conversion

  2. You can stuff extra money into your 401(k) and take the deduction until December 31. For IRAs, you have until April 15. However, given what I said about tax rates going up, you may want to take the deduction next year.

  3. Spend your FSA balances

  4. If you have money in a Flexible Spending Account for health care or day care, use it now or lose it. Also, as of January 1, over-the-counter medication is no longer eligible for FSA reimbursement, so buy it now. Now is also the time to submit your paperwork for next year’s FSA. Oh, and don’t forget that summer camp is often deductible.

  5. Make a 1099/W-2 checklist

  6. This saves me a lot of tax worries every year. If you’re self-employed and get 1099-MISCs, or have money at a number of banks and brokerages, or worked several jobs this year, you need to collect a pile of paperwork before you can file the 1040. Make a list now and check it off in February as the paperwork arrives. No more of that “oh crap, I thought I was going to get my taxes done today but I’m short a 1099” feeling.
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If you thought these were good tips, check out the entire list of suggestions from Mint.com here (10 Things You Can Do Now To Pay Less Taxes For 2010 — Or Beyond)

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