There are several ways to reduce your taxes each year. The top items are listed below:
1. If you normally itemize deductions make charitable contributions before December 31. You must have a cancelled check, bank card statement or any other written receipt. Contributions may in the form of material items, cash or stock.
2. Complete energy efficient home improvements. The improvements must be done to your personal residence.
3. Adjust your portfolio. You may normally deduct up to $3,000 in losses each year. Losses in excess of the annual $3,000 allotment may be carried forward to future years.
4. Max out you retirement accounts. Set up a IRA, Roth or contribute to your company 401K programs.
5. Make a qualified charitable distribution. If you have reached the age of 70 1/2 or older you may contribute your required distribution to a qualified charity allowing you to exclude the amount from your gross income not to exceed $100,000 annually.
6. Take the small business Health Care credit. If you are a small business and pay at least half of your employees health insurance premiums, you may qualify for a credit of up to 35% of the premiums paid.
Final tip, save those receipts and records relating to any income or expense paid or received.
