3 Year-End Tax Tips to help you save

3 Year-End Tax Tips to help you save -

Amid the bustle of the holidays, the last thing we want to think is preparing tax - but once the ball fell and the tree was undecorated and thrown out on the pavement, the countdown to the 2014 tax season begins. Yes, it's almost that time of year again: the tax season 2014 officially opens Jan. 31 - just one day later than last year. You should not wait until the new year to start preparing. The IRS recently published a list of tips to help you get ahead of the curve and save money before it is time to start the repression on return.

Tax Tips to help you save the year ends

1. Start a classification system: It pays to be organized at tax time instead of running around looking for that one receipt you need but can not find. The ranking system you decide on can be as simple or complex as you need it - to put aside a shoebox for receipts using folders in a filing cabinet, or even create spreadsheets online to track your finances. It is too late for 2013 if you do not already have a ranking system, but it is never too early to start keeping track for next year. From now can save you a lot of hassle when it's time to start filing your 2014 income
2. Donate to charity: Not only is it a comforting thing to do during the holiday season, but the holiday gifts can be claimed as a tax write off. If you make your donation before December 31, you make sure that you can claim your contribution as an itemized deduction for 2013. The checks sent in December also count, and the IRS reminds readers that you do not have to worry to pay your credit card draft law by the end of the year for that account - pay it in 2014 still means you can request a donation by credit card purchase on your tax return in 2013 . Remember to always get a receipt for all charitable donations you made
3. Contribute to your retirement account: Credit Saver (also known as the contribution of retirement savings credit) helps lower and middle class citizens to save for retirement while earning a tax credit. The most you can be credited is $ or 2000 $ 1000 for married couples - but the amount you get credited can be affected by other deductions and / or credits you receive. This is a smart way to save not only because you plan for your future, but you also get something in the short term. As charitable donations, it is important to remember that you need to bring your contribution to your 401 (k) or similar retirement plan for December 31 this account for fiscal year 2013.

These tips are simple and easy to follow, so 2013 is winding down be sure to keep in mind between the New Year festivities. Want to know more about the preparation taxes and see how the different services stack against each other? Check our tax preparation advice for in-depth breakdown of each of the high-level services.