Year End Tax Planning

Many of you have tax situations that are not complicated. If So, you may consider using tax preparation software. They are not hard to use, but there is a slight learning curve to acquaint yourself with the process before using it. It also has many new tax laws listed.

-Organize Receipts

If you use a tax preparation service, do yourself a favor and organize and label any and all of your receipts that may result in a potential tax deduction. Read through possible tax deductions at irs.gov (the internal revenue website), to see if you qualify for any of the deductions you think you may qualify for. Business people should be especially careful when organizing receipts and give this area a lot of time and attention.

-Tax Favored Retirement Plans Don't forget to fund your retirement account. Time is running out to get one of the best tax deductions the government allows. There are many types of plans available for individuals or small business owners. Among them are the IRA for individuals, and for business, the Sep-IRA, profit-sharing Keogh, Simple IRA, or Solo 401k. You can use a simple mutual fund, or other investment to fund your retirement account. It is imperative that you understand the investment your retirement account is going into.

-Defer Income and Accelerate Spending For Businesses

You can defer taking some of the income from this year and defer taking it until next year. You can also spend money you were going to spend on equipment, software or other business necessities this year instead of next.

-Your Tax Situation

Each and every person has a different situation. Make sure you understand your specific tax situation before you go to your accountant, you are responsible for everything that goes on your tax form, so it is imperative that you understand it. Question your accountant, use irs.gov to research your situation in detail, and read the tax information at Msfinancialsavvy.

-Give to Charity

You only have a short time to give to your favorite charity. Give to your church, non-profit or favorite foundation by year end.

Lois Center-Shabazz is the founder of the award-winning website, visit her on the web, at www.msfinancialsavvy.com