Year End Quick Tip

With less than a week left in the year, there are still a few things you can do that will make an impact on your taxes.

Donations to charity up through the end of the year will be deductible on your Schedule A if you itemize. Ask the organization if they are a qualified organization, or check Publication 78 at irs.gov by clicking here.

Contributions to your 401k up through the end of the year will lower your taxable income. For IRA’s, you have until April 15th to contribute. You may get a retirement credit for your IRA contribution, but it will not  reduce your taxable income.

If you have open bills, you can pay them this week to lower your net profit.
Be sure the expense has already been incurred and is not a future cost.

Lastly, some self-employed people can control when they get paid. Properly deferring income until next year can lower your tax liability for this year. Talk to your tax advisor or CPA about the proper way to defer income. The IRS web site, at www.IRS.gov also has a wealth of information.

And as always, be sure to keep good records!
A Step Up Bookkeeping Services wishes you a prosperous 2011!