Last Minute Tax Tips
December 20, 2012, 12:35 am
We all know we can donate to Goodwill or Salvation Army for those last minute deductions, but there are other ways to lower your 2012 tax bill. Gilbert Gleason is a tax preparer with H and R Block
. Here are 3 more suggestions for maximizing your deductions for 2012.
1. Pay a few extra bills.
Gleason says if you're able to make an extra student loan or tuition payment, or pre-pay your January 2013 mortgage bill. Gleason says you can deduct that interest for this year, and you can get as much as $2,500 dollars back.
2. Offset capital gains with capital losses.
Gleason says if you have stock that's losing money, and another that's making you money, now is a good time to unload that low performing stock. If you hang on to the stock that's losing you money, it could offset what your net capital gain.
3. Increase your contributions to your retirement.
If you contribute the maximum to your 401-K, you will reduce your taxable income, as all 401-K contributions are made pre-tax. You can ask your Human Resources representative if you've hit your cap for 2012.