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TurboTax Year-End Tax Tips

Given the current state of the economy it is even more important for taxpayers to do everything they can to slash their tax bill.

Bob Meighan, CPA and vice president at TurboTax says there’s still time for taxpayers to take advantage of some easy, year-end tax tips:

Sell losing investments
Taking a loss this year may help taxpayers offset tax from other gains or income, but that loss is limited to $3,000. Any amount in excess of that must be carried over to their 2009 tax return.

Donate to Charity
Donating clothes, toys, household goods and other items to charity before Dec. 31 may help taxpayers who itemize claim bigger refunds while helping someone else. Using software like TurboTax helps taxpayers accurately value donations in accordance with IRS guidelines so there’s no need to guess at an item’s fair market value.

Prepay some bills
Taxpayers can prepay a few of their 2009 bills in 2008, and get to write them off on this year’s tax return. This includes mortgage payments and predictable medical expenses, like braces for the kids.

One other thing to remember
Taxpayers that did not qualify for an economic stimulus payment in 2007 are getting a second chance. People who had financial or other life changes in 2008, like a lost job or a new baby, and now meet the requirements may be eligible to receive a rebate in 2009.

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Comments (14)
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14 Existing Comments
  1. Shawn Weeks said:
    on November 20th at 01:11 pm

    Donating to charity is a good idea, not just to save money on your taxes — but there are a lot of people shopping at Goodwill this year. I have a Goodwill by my house and I’ve noticed a huge surge in cars in the parking lot the past few months.

  2. Johns Wu said:
    on November 20th at 01:40 pm

    Hey Shawn! Good to see you on the site!

  3. BloggingBanks said:
    on November 20th at 04:06 pm

    I will be selling a lot of losing investments this year..:-(

  4. Dan said:
    on November 20th at 09:32 pm

    If you have a traditional IRA that you opened recently, say last two years, you can convert it to a ROTH IRA (if you pull in less than 100k annually).

  5. Do you know why? said:
    on November 21st at 07:39 am

    With all the losses in the world from real estate, savings, stocks, there is no need to use old tactics for saving taxes. This is why these posts are low quality mish mash that is coming out of bankaholic as if some one is forcing the writer to write something that his heart is not set upon. Also notice how brief they are? And a pity able frequency of once a week.

    Is this what you get from a $12 million dollar blog?

  6. Trevor said:
    on November 22nd at 02:59 am

    Great information! Helpful for a lot of people I know!

  7. Do you know why? said:
    on November 24th at 12:02 am

    Yes 4 posts in 30 days. I have been saying this over and over again. The editorial quality has gone to hell. These posts used to be 500 words, now they come in tiny boxes of 100 or less !

    Back links in comments banned. Posters banned, dissent purged, and all comments are now No follow. Might as well start your own Banking blog…

  8. Eka Riyadi said:
    on November 24th at 10:43 am

    Turbo Tax the best resource for software solution… 🙂

  9. Drew said:
    on November 24th at 12:58 pm

    Only allowing a maximum of claiming up to $3000 as a loss is total bullshi*!!
    Who in the hell would approve of that rule, and when is it going to change?

    When you have a gain, they make you claim ALL of it during that year, but only allow up to $3000 claim for a loss?!?!?

  10. Trevor said:
    on December 9th at 01:49 am

    This site is so great! Great information! Helpful for a lot of people I know!

  11. wow said:
    on December 11th at 05:11 am

    sweet

  12. wow1 said:
    on December 11th at 05:18 am

    your text here

  13. Michael Rozbruch, IRS Problem Solver said:
    on December 17th at 12:16 am

    Good advice! Also know that you can save money by avoiding IRS failure to file penalties. I think that this will be really important this year as many people may be unable to pay their tax bill.
    http://www.taxresolution.com/blog/?p=387

  14. Ian Jackson said:
    on July 16th at 12:42 pm

    Still the best tip and might be the most effective is to seek tax debt help from consultants.