I know, I know, you don’t want to hear about taxes in December. But just like there are many ways to save money on our purchases right now, there are many ways that we can save on our taxes right now too.
Most, but not all, of the tips listed below are for those who own a home and/or itemize their deductions. If you don’t know whether or not you are eligible for these deductions please leave a comment below or contact me anytime.
Before I begin, let me quickly say that these items are the ones that I have noticed get overlooked most often. Each year I prepare over 200 tax returns, and just like a teacher who has to grade well over 200 papers throughout the year – I remember this all too well during my 5 years of teaching junior high – we all start to notice common mistakes that are overlooked repeatedly.
So here some things that you still have time to do before the end of the year to save money on your taxes.
Classroom/Office Party – If you are having a party in your class/office, make sure to save those receipts.
Unreimbursed School/Business Expenses – Purchases that you don’t get reimbursed for can be written off as long as you use them more than 50% for school/work.
School/Work Shirts/Sweatshirts – Many people buy shirts with their school logo or work logo on them. Did you know you can write these purchases off?
Charity/Church Cash Donations – This also includes donations through check and credit cards. Gift purchases used for “Toys for Tots” or some other charitable function can also be included, just make sure you save your receipts.
Charity Non-Cash Donations – If you’re like me and my family, you may have already started de-cluttering your home and getting rid of some unused items. Donate these items to either Goodwill or some other non-profit that allows for such donations – don’t throw them away! Take a picture of the items you’re donating, and use this sheet provided by Goodwill® to help calculate the cost. This could save you a ton of money in taxes! Believe me, it’s worth it.
College Tuition – If you, your spouse, or child/dependent are going to college next semester, you may want to pay the tuition this year.
Energy Saving Home Improvements – The tax credit for the cost of energy-saving home improvements is 30 percent for 2010, up to a combined maximum of $1,500 in both 2009 and 2010. It applies to qualified insulation, windows, outside doors, biomass fuel stoves and high-efficiency furnaces, water heaters and central air conditioners.
Have a Baby – Just Kidding! I just wanted to see if you’re still reading! If you do start though, you may get a credit/deduction next year!
Obviously, there are more things that can be done before the end of the year, and this is just a short list. If you do have any questions, or would like clarification on something I talked about above, or something I didn’t mention, please feel free to leave a comment below, or contact me anytime.