6 Tax Saving Tips to Help Consumers Save Money Next Year

By making just a few simple tax moves consumers can greatly reduce their tax bill.

Jan 15, 2010, 12:01 ET from ChristianPF.com

ST. LOUIS, Jan. 15 /PRNewswire/ -- Financial blog, ChristianPF.com released an article discussing 6 common and simple tax saving strategies worth considering for the new year. The money saving tips include ideas from organizing your filing cabinet to converting your IRA to a Roth in 2010. While completely different in their approach, each has the potential to greatly reduce consumers' tax bills.

A little bit from the article...

Get Your Filing Cabinet In Order

Soon enough you will be inundated with paper work. The post office is the only institution that is happy at this time of the year. You need to prepare today so your tax season will go more easily. If your taxes are relatively simple just start a new file in your filing cabinet that says "2009 Taxes" Any time you get a tax document in the mail just drop it in that file (until you get the energy to deal with your taxes). If your taxes are more complicated you might want several files for all the different documents. In addition, you need to start collecting all of your tax related documents into one source. Make the appropriate file and get it ready. Start reviewing your current documents to be sure everything is in order. A little work today saves a throbbing head tomorrow.

Start an Automobile Log

Include the following categories on a notebook you put in your glove box. Date, destination, purpose, start mileage, finish mileage, category (business or charity). Did you know that you can deduct miles used for charitable work? If you do any charity work (and I hope you do) you need this notebook in your car. Also, if you do any driving for your company you need to record all of your miles in this book.

Open a Traditional IRA

IRAs are a great way to avoid capital gain taxes. If you have not yet opened or fully funded an IRA, you can do so today. In fact, you have until April 16th, 2010 to fully fund your 2009 Roth or Traditional IRA. Your 2009 limit is $5,000. As you review your tax situation, if you are on the threshold of a higher tax bracket, a Traditional IRA might be a great tax move. Just as a reminder, a Roth IRA will not reduce your 2009 tax liability as you will pay taxes on that money today. Nevertheless, it still might be a better choice for you.

Read the full article: http://www.christianpf.com/tax-saving-tips-save-money-on-taxes/

SOURCE ChristianPF.com



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