Need to reduce 2007 taxes? Act now
Posted
Dec 29 2007, 03:17 PM
by
Karen Datko
Kay Bell of Don't Mess With Taxes, an exceptional source of tax-related information, reminds us that there's little time left to make several possible end-of-year moves to reduce your tax liability for 2007. Luckily, Dec. 31 falls on a Monday, giving procrastinators one more business day as the year winds to a close. Bell also gives us the good news that the IRS will start processing most tax returns on time, despite problems caused by Congress' last-minute vote on the alternative minimum tax. (About 13.5 million taxpayers will have to wait until February to file.) So, what can you do to reduce your 2007 tax burden?
Bell offers lots of good advice and links to other articles that can help you if you act quickly. (See this handy MSN Money tax calendar for other important tax dates, including the deadline for making an IRA contribution.) Her tips include charitable contributions and adjustments to your investment portfolio. You also can make your January mortgage payment by Dec. 31 and count the interest among your 2007 deductions. Don't forget the sales tax deduction and the tax break for buying a hybrid car. An article at MSN Money by tax expert Jeff Schnepper is another good read on ways to reduce taxes. He also writes about 10 tax deductions that too often go unused.
