The IRS is giving out tips among taxpayers this time of the year, where filing 2011 taxes are coming to an end. Two more days until the calendar starts to switch its page into the next month of the new year. They have given out six saving tips for all taxpayers out there willing to lower their 2011 taxes.
• Make Charitable Contributions
Donations must be qualified for charities. Old clothes and household items must be in good condition to be accepted for deductions on taxes. If the donation is in the form of a bank statement or credit card, it should have the name of the charity, the date, and the amount donated.
• Install Energy–Efficient Home Improvements
To qualify for a home credit, one must install in his home some energy-saving improvements such as new windows and water heaters. He must be eco-friendly, and act green for the sake of Mother Earth and his tax.
• Consider a portfolio adjustment
Check the investments for gains and losses, including sales. If the net capital losses are more than $3,000, the excess can be deducted in upcoming years in the future.
• Contribute the Maximum to Retirement Accounts
Save great amounts on retirement accounts such as the Saver’s Credit. The maximum Saver’s Credit is $1,000 and for married couples, $2,000. The amount allowed could be reduced or eliminated for some taxpayers in part because of other deductions and credits.
• Make a Qualified Charitable Distributions
If the taxpayer is age 70 above and in the age for QCD or Qualified Charitable Distribution, he can make distribution paid directly from his retirement account to a charity institution.
• Don’t Overlook Small Business Health Care Tax Credit
Having to pay for the health insurance premium of several employees can qualify a taxpayer for a tax credit of 35% of the premiums paid. This is suitable for taxpayers who own a small business that managed employees.
These saving tips can help every taxpayer earn tax credits. It could help them in little ways on how to reduce their supposedly 2011 taxes. Since there are countable days left before 2012, a money-conscious taxpayer should start doing one of the stated tips above for a much lesser tax return.