Slash Your Taxes While You Still Can (NAPSA)—Not thinking about taxes yet? You should. There are five simple steps you can take now to boost your tax refund come April 15, says Fred Grant, CPA and senior tax analyst for TurboTax. 1. Pay now, save later. Pay your January mortgage payment, your property tax bill or purchase business equipment before January 1. Doing this can accelerate your tax savings, especially if your incomeis high this year or will be lower next year. 2. Donate to charity. Simply cleaning out your garage or closet can lead to tax savings if you donate items you no longer use to charity. If you aren’t sure about what your “cherished” possessions maybe worth, software like ItsDeductible gives you the fair-market value of items you donate. 3. Defer income. Contribute to a tax-deductible retirement plan such as an IRA or 401(k) plan. They can grow to a substantial sum over time on a tax-deferred basis. If self employed, set up a Keogh retirement plan by December 31. Oncethe plan is in place, you can contribute until the tax-filing deadline. Unless required to, don’t take moneyoutof yourretirementplans until the new year. 4, Be tax smart. In a year of stock market ups and downs, you may have somenice capital gains from selling stock or mutual Before the end of the calendar year, there’s still time to save on your tax bill. funds. You can offset the taxes from these gains by selling other stocks or mutual funds in your portfolio at a loss before year-end. 5. Know your AGI. Your adjusted gross incomeis one of the most important numbers when it comes to tax time. Your AGI controls whether you can deduct certain expenses, such as medical or education, if you are eligible for certain credits, like the child tax credit, and plays an important role in determining the extent to which you are taxed. Bottom line: Don’t be caughtoff guard. Taking steps now to prepare can mean real savings for you later. For more helpful information and tax tips, visit the Website at www.turbotax.com.
