TurboTax Year-End Tax Tips


Given the current state of the economy it is even more important for taxpayers to do everything they can to slash their tax bill.

Bob Meighan, CPA and vice president at TurboTax says there’s still time for taxpayers to take advantage of some easy, year-end tax tips:

Sell losing investments
Taking a loss this year may help taxpayers offset tax from other gains or income, but that loss is limited to $3,000. Any amount in excess of that must be carried over to their 2009 tax return.

Donate to Charity
Donating clothes, toys, household goods and other items to charity before Dec. 31 may help taxpayers who itemize claim bigger refunds while helping someone else. Using software like TurboTax helps taxpayers accurately value donations in accordance with IRS guidelines so there’s no need to guess at an item’s fair market value.

Prepay some bills
Taxpayers can prepay a few of their 2009 bills in 2008, and get to write them off on this year’s tax return. This includes mortgage payments and predictable medical expenses, like braces for the kids.

One other thing to remember
Taxpayers that did not qualify for an economic stimulus payment in 2007 are getting a second chance. People who had financial or other life changes in 2008, like a lost job or a new baby, and now meet the requirements may be eligible to receive a rebate in 2009.


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