Tax day may be more than a month away, but
with some planning ahead you could find yourself in great tax shape come
April 15. Any financial move you make by December 31 affects your taxes
this year, so check out these simple ideas for minimizing your taxes
and you'll really have something to celebrate this New Year's Eve!
Create a system for managing paperwork
for your tax return today. Simply label a folder or large envelope “Taxes
2003” and file all forms, receipts,
W-2s, and articles about new tax laws in your tax file. Keep everything
together and you won't be scrambling to find important paperwork next
Me, itemize? I can't even keep track of my
shoes! It may sound intimidating, but one third of all tax payers itemize
and it's really quite simple!
Income taxes are based on the following principle:
Income – Deductions = Taxable Income
So the more deductions
you can take, the less your taxable income and therefore, the less your
First, figure out if you can itemize. If the amount of your itemized
deductions is greater than the standard deduction, itemize. You will
find a worksheet for this in the IRS 1040 Form.