Here are a few tax-saving tips you should consider before the calendar turns 2012:
- Get Those New Windows
You still have time this year to make energy-saving home improvements and qualify for either of two home energy credits. Installing energy efficient improvements such as insulation or new windows can provide up to $500 in tax savings.
- Low Income? Make an IRA Distribution
The saver’s credit, also known as the Retirement Savings Contribution Credit,isa special tax credit that helps offset part of the first $2,000 low- to moderate- income workers voluntarily contribute to IRAs and to 401(k) plans. For more information about the saver’s credit, click here: Retirement Savings Credit
The deadline to set up a new IRA or add money to an existing IRA and receive credit for 2011 is April 17, 2012. You normally can contribute up $5,000 to a traditional or Roth IRA, or up to $6,000 if age 50 or over.
- Don’t Overlook The Small Business Health Care Tax Credit
If you are a small employer who pays at least half of your employee health insurance premiums, you may qualify for a tax credit of up to 35% of the premiums paid. To qualify you must have fewer than 25 full-time employees who are paid an average wage of less than $50,000 a year.
- Check Your Portfolio
You may deduct capital losses up to the amount of capital gains, plus $3,000 from other income. It would be wise to check your gains and losses from investments before December 31stto decide if you should sell before year-end.
- Make a Charitable Contribution on a Credit Card
Want to reduce your 2011 taxes with a donation but don’t have money right now? As long as your credit card is billed before the end of December 31, 2011, your donation is deductible for 2011, even though the bill is not paid until 2012.