12.28.2011 / End of Year Tax Savings Tips.
The end of 2011 is approaching which means tax season is just around the corner. But there is still time to reduce your tax bill and take advantage of some tax savings tips.
- Make a charitable donation: Any charitable donation completed before January 1, 2012 will be deductible on your 2011 return. Donate clothing or households goods or send a cash donation to a local charity. Be sure to get a receipt from the receiving organization.
- Prepay college tuition: If you, your spouse or a dependent child will be attending college during the first semester of 2012, prepay the tuition and fees. The cost of the tuition and fees may be deductible up to a certain amount.
- Use up your flexible spending account funds: If you still have funds remaining in a flexible spending account, be sure to use these up before the end of the year, otherwise you will lose the money. Review the list of eligible expenses and determine what items would be useful for you to purchase. Schedule routine appointments or use the money by prepaying for medications you will need in 2012.
- Maximize your 401(k) contribution: If you are not already contributing the maximum amount to your 401 (k) account, increase your contributions. Contributions are tax-free and will lower your taxable salary.
- Make energy-saving home improvements: A variety of home improvements to increase energy savings in existing homes qualify for a 2011 tax credit. From replacing windows and doors to adding adequate insulation, there is still time for you to take save on your taxes and save on energy costs. Visit www.energystar.govfor more information on qualifying projects.
Do you have any tax savings tips? Please post a comment on www.facebook.com/fnbomaha.


