Industry News - Regulatory Updates
December 6, 2011
Last-minute tax tips
Little time remains to save on 2011 taxes, MainStreet notes, but there are still some options and accounting tips savvy individuals can explore and use.
For example, because the Internal Revenue Service allows medical expenses above 7.5 percent of an individual's adjusted gross income to be deducted, it may be wise to take care of any medical issues before the end of the year. Refilling prescriptions, attending check-ups, scheduling any doctor visits and exams and other steps can add up. While it may not be worth it for a taxpayer too far below the 7.5 percent threshold to qualify, others could save significantly by paying outstanding medical bills, buying any needed medical supplies and otherwise logging expenses this December.
The source notes individuals can also track their gas mileage when driving to and from medical appointments. It may also be possible to make a monthly insurance payment early, or time the renewal of long-term care coverage.
For those who are planning to deduct their state and local sales taxes on federal returns, rather than income taxes, the source indicates, now maybe a good time to buy a new car. While this might be wasteful for some, those who need one now or will soon can benefit significantly from the deduction. Similarly, it may be wise to purchase any other large and expensive items before the end of this year and the beginning of 2012.
Paying mortgage interest early can be another deductible expense, as long as the payment is received on time. Similarly, charitable donations can be written off, as long as they are properly documented.