Some year-end tax tips to lower your tax liability

If there is one thing I hate it is paying taxes! I am sure pretty much everyone agrees with me on this one though. I really hate the idea of having to send the IRS peeps money come tax day, so I have been looking for ways to lower my tax liability for this year.

See, when I was getting unemployment the amount was so meager that I did not have taxes taken out of it. That means come tax time I have to pay taxes on that unemployment income. I will also have to pay taxes on the online income from places like Associated Content. And when you add in the salary increase that I got with my new job, I am fairly certain I have to look forward to writing a check to the friendly peeps at the IRS  😀

I really do not want to do that. And I bet you do not want to either. So here are some things you can do to hopefully avoid that come tax time!

  • Contribute the max to retirement accounts. (I believe you have until tax day to fill up the IRA!)
  • See if you can pay some of next year’s expenses in December
  • Let’s not forget about charitable giving
  • If you are self-employed, stock up on supplies and equipment before the end of the year
  • Gift away up to $12,000 to your kids or other relatives

Those are some of the things I have discovered. However I am not a tax person, so please check with a professional if you are unclear on something before taking my advice.

And if you have any tips for me, feel free to share!