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7 EndoftheYear Tax Planning Tips from Tax Lady Roni Deutch

Tax Lady Roni Deutch has gathered her top seven end-of-the-year tax planning tips to help taxpayers lower their taxable income and avoid incurring an unpaid tax liability this coming tax season.

"I've been helping taxpayers settle IRS tax liabilities for nearly 17 years now, and in my experience the best way to avoid owing back taxes is to avoid IRS problems before they start," notes Ms. Deutch. "As the year comes to an end people are probably too busy with holiday preparations to even think about taxes, but with the end of the year barely a month away there are certain measures you can take to lighten your tax burden. Below is a list of my top seven end-of-the-year tax planning tips to help lower your income tax liability this year, before it's too late."

1)     Thoroughly review your income, expenses, deductions, and financial portfolio

Before you begin taking action to reduce your income tax liability, it is important to understand your specific financial situation. If your capital gains and wage income are lower than last year, and your expenses are higher, then you may not need to take any action at all.

2)     Use your credit card for year-end deductible expenses

If you have deductible expenses (such as business or medical expenses) you can pay for them with your credit card, claim the deduction this year, and wait to pay off your credit card until next year.

3)     Prepay any state and/or local taxes you might owe

If you are going to owe any money to your state or local government, you can use a state/local prepayment voucher and make your tax payment before the end of the year. That way you can deduct the amount from this year's federal tax return instead of waiting until next year.

4)     Make your next mortgage payment before December ends

Making your mortgage payment a few days early will allow you to take a higher interest deduction this year. However, keep in mind that this will result in a lower interest deduction the following year.

5)     Make "catch-up" 401(k) payments

Typically, individuals must make 401(k) contributions throughout the year. However, some plans allow for "catch-up" payments in December if your contribution level is less than the maximum allowed. Contributing spare money in December to your 401(k) could be a great way to lower your taxable income, but keep in mind that not all plans allow for this "catch-up."

6)     Gather all charitable contribution receipts

If you made any charitable contributions this year make sure you have the receipts handy. New IRS restrictions require receipts for any contributions over $250, and gathering this information ahead of time is much easier then frantically searching for receipts before an IRS audit. If you have not made any contributions this year you may want to do so before the end of the year.

7)     Defer income until next year

If you can defer some of this year's income until next year you will have lower taxable income this year and thus have a lower tax liability. This tactic is easier for self-employed individuals, but can work for numerous other taxpayers as well.

Millions of people recognize tax attorney Roni Deutch (http://www.ronideutch.com/ViewArticle.aspxid=25) services, visit their website at RoniDeutch.com or call 1-888-TAX-LADY. To learn more about tax attorney Roni Deutch you can visit her blog (http://www.avvo.com/attorneys/95660-ca-roni-deutch-244870.html).

Contact:

Mathew Guiver, Search Engine Marketing Analyst

Roni Lynn Deutch, A Professional Tax Corporation

877-232-8477 Ext. 1914

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