Here are Two Tips for Minimizing Next Year's Tax Bill

What can you do now to reduce what you will owe in taxes next year? Here are two tips:

1. keep all receipts and records that will help identify the credits and deductions to which you might be entitled:

• Business expenses,
• Charitable contributions,
• Child care,
• College expenses,
• Alimony,
• Deductible taxes, and
• Medical expenses.

2. Try to make the maximum contribution to any qualified retirement plan that you participate in- whether 401(k) plan, IRA, or other qualified retirement vehicle. Contributions that are deductible (to self-employed retirement plans and some IRAs) and pre-tax contributions to 401(k)s and other qualified plans, will cut your taxes this year. And allowable after-tax contributions, though not deductible or excludable this year, earn income that will be tax-deferred until withdrawn.