2009 Year-End Tips
As the end of 2009 quickly approaches, it’s important for all tax payers to begin preparing for the filing of their 2009 tax returns.
- Have you maxed out your HSA or IRA contributions? People with these kinds of accounts can actually make contributions for 2009 through April 15. Maximizing your contribution helps reduce your taxable income by the amount of the contribution. For certain tax payers, contributions to specific retirement accounts provide a special credit. This credit is based on income level.
- Have you tallied up all those miles? If you drive a personal vehicle for company business, or have your own business, adding up the miles and summarizing them will make your tax preparer much happier. Miles driven for charitable or medical purposes also can be useful. If you can do this in a spreadsheet program and provide it digitally, you may be able to save some money. Check now to make sure you can find all of your logs. It’s much easier to begin assembling your records now than the night before your appointment with the preparer.
- Make a list now of the documents your tax preparer might need. You should be receiving an organizer from the preparer that can guide you as you dig for your documentation.
- Take a look at tax changes for 2010. The website paycheckcity.com has free calculators available that can help you evaluate your paycheck based on 2010 tax tables. Do you need to make some changes? Did you have more or less withholding this year than you were expecting? Now is the time to change it before the new year starts and you forget.
- Did you move in 2009? If so, to get your W-2s from past or current employers in a timely fashion, you will need to notify them to update their records. Also make sure you tell your tax preparer if you moved. This can affect the types and amounts of taxes you pay.
- Did you claim exempt on your W-4 for 2009? If you plan on remaining in that status, you must submit a new W-4 to your employer verifying that status by February 15. Keep in mind that Form W-4 is used to notify your employer of address changes as well.
- Are there any last minute charitable contributions you can make? Keep in mind the requirements for documentation for non-cash contributions. Independent appraisals are often required if the value of the non-cash donation exceeds $5,000.
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