End of the year tax tips
Las Vegas, NV (KTNV) -- Our mission at Action News is to make Las Vegas a better place to live. One way to do that, is by helping you save some money. And as Contact 13's Tricia Kean reports, there are some things you can do now to lower your 2012 tax bill.
The April tax deadline is still months away. But there are a few steps you can take, that could make things easier, if you act before the end of the year. Number one: homeowners should try paying their mortgage early.
"Make your January mortgage payment this month, this way you get the interest deduction on that payment this year, versus next year," says Action News Financial Analyst Steve Budin.
He says, just don't forget to get it post marked by December 31st. If you make your payments online, then make sure to print yourself a receipt.
Two: writing a check to a recognized charity is a quick and easy deduction. Just don't forget any paperwork.
"Have your receipt dated by December 31st and have an accurate accounting so you can justify that later on," says Steve.
Number three: reduce your taxable income.
"If you sell some investments at a loss, you can potentially off set that loss against some of your income," says Steve.
But remember, if you actually made money from any investments, or withdrew from a retirement fund, you may get a 1099 tax bill. That money is taxable, so don't let it take you by surprise.
And four: pay the taxes now, for any end of the year bonus, or extra income. It's important to take advantage of the current rate, because chances are income tax rates will be up next year.
In the end, if you have questions, just look back to last year's paperwork.
"There really haven't been too many changes between 2011 and 2012. So a lot of what your accustom to doing last year, will probably carry forward to this year," says Steve.
So here's the Contact 13 bottom line: if you're taking advantage of any of these strategies, you better get moving. Your chances are over once the clock strikes midnight on New Year's Eve. The deadline to file your taxes is Monday, April 15th. For Contact 13, I'm Tricia Kean.