How to Find Last Minute Deductions From Taxes

Filing taxes can be complicated and extensive and even the best accountants can over look deductions. You should check your taxes several times before sending them in. Give yourself a few days to think after the taxes have been prepared before mailing them if time allows. You might be surprised how many list minute deductions you can find.

Difficulty: Easy

Instructions

1. Put money into an IRA. If you are not covered by a retirement plan this money is fully tax deductible up to a certain limit. If you are part of a retirement plan it still might be partially deductible depending on your income. You have until April 15th of the following year to make your IRA contribution.

2. Deposit into a Simplified Employee Pension plan (SEP) if you are self employed. This money is fully deductible and the maximum amount you can deposit is greater than with the IRA.

3. Search personal records for overlooked deductible expenses such as toll business call made from your home phone or fees for professional memberships and journals. Be sure to check records through February of the following year as some December charges don't make it onto the bill until January or February.

4. Postpone income. If you get an end of the year bonus, ask your boss to give it to you in January. If you are self employed invoice December customers in January.

5. Pre-pay deductible expenses, such as property taxes, for the coming year before December 31. You could also pay January's mortgage in December so you can deduct an extra month of interest.

6. Donate appreciated equipment to a charitable organization and you can deduct the full current market value.