End of the year tax tips to keep more money in your wallet
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Las Vegas, NV (KTNV) -- After spending so much money this holiday season, we're helping you keep some of your hard earned cash in your wallet.
What can you do to lower your 2013 tax bill?
The April tax deadline is months away. But there are steps you can take before the clock strikes midnight on New Year's Eve, that will help you save.
1. Homeowners should try paying their mortgage early.
"If you have your mortgage payment due Jan. 1, make the payment this week so you can get the interest deduction for 2013, versus 2014," said Action News Financial Analyst Steve Budin.
He said just don't forget to get it post marked by Dec. 31. If you make your payments online, then print yourself a receipt.
2. Writing a check to a recognized charity is an easy deduction. Just don't forget the paperwork.
"The IRS is really beginning to crackdown on charitable contribution abuse. So you just want to make sure anything you do has a verifiable receipt," said Steve.
3. Reduce your taxable income. If you sell some investments at a loss, don't forget the first $3,000 can be used to offset your income.
4. "If you're looking to buy a big ticket item like a car, you might want to do it this year, because you can deduct the sales tax off your income tax," said Steve.
It's important to remember that sales tax deduction hasn't been extended yet, into 2014. So you could get more bang for your buck, when you buy that item before the year ends. Ultimately if you have questions, just look back to your 2012 paperwork.
"Generally things you were doing last year, you can do this year. There really haven't been too many changes," said Steve.
If you're taking advantage of any of these strategies, you better get moving. Your chances are over Jan. 1.
The deadline to file your taxes is Tuesday, April 15. If you're looking to make last minute donations for tax purposes, there are a couple websites that provide information about legitimate charities: