END OF YEAR TAX TIPS TO GET WORKING ON NOW

By Deborah Laemmerhirt | October 1, 2012

There are several steps you can take now to make sure you reduce your tax bite come April of next year. But you have to start preparing!

The easiest tax reducing measure that most homeowners with a mortgage can implement is making a 13th mortgage payment right before the end of  the year.(so start saving) As many homeowners use their mortgage interest paid as a income deduction, adding a 13th payment ( or even paying January’s early) right before December 31st can save on average $125 in taxes. Before you set the budget for holiday spending, see if a last minute payment can be made.

 

  • If you normally get an “end of year bonus”, get ready to ask your employer if they can defer it to 2013 so the added income will not be counted as income for THIS YEAR.
  • Have you maxed out your 401K contributions? Have you taken advantage of your Flexible Spending Accounts, or Health Savings Account?
  • Review your medical costs – Keep track of your un-reimbursed medical expenses all year long. You can deduct them only if they’re more than 7.5% of your AGI. If you’re close to the 7.5% requirement, you might consider having an elective or necessary procedure before year-end.
  • If your state allows 529 Tuition plans, check on the benefits of increasing contributions this year vs. next year.
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About Deborah Laemmerhirt

Let me assist you in finding everything you need to know about buying or selling a home! As the preeminent real estate professional in my community, I am dedicated to providing the finest service available while breaking new ground. Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. I go the extra mile to help you achieve your goals. That’s why I constantly research the home, market and estate values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative marketing techniques to attract potential buyers. As an Internet-savvy real estate representative in Connecticut, I’ve had the opportunity to help many home buyers find their ideal homes and many sellers obtain top dollar for their homes. Buying or selling a home is one of the largest financial transactions that most people ever undertake, so I will help you through every step of the process. My goal is to make your home selling or buying experience as easy and enjoyable as possible. My services include: Explaining the home selling and buying process thoroughly Diligently selecting homes that meets your criteria Pricing your home correctly and implementing a unique yet proven marketing plan Negotiating on your behalf Tracking the closing process to ensure a smooth transaction I welcome the opportunity to address any questions you might have about buying, selling or current market conditions. Please call or e-mail me any time, and I will be happy to discuss your next steps in the buying or selling process. I specialize in both Residential and Commercial Properties. I also head a Real Estate Group to provide you with expert service and support. Areas of Expertise Making transitions in your life is challenging. You may be moving from out of town, a different state, internationally or just next door! Regardless of the distance I am prepared to respond to your unique needs.If you are a BUYER looking to downsize, up-size, want a new construction, desire a condominium, to invest, even if this is your first home, I will design a unique plan to fulfill your needs in a reasonable time frame, with the best negotiated price and the least amount of inconvenience.For my Home Sellers, I have an innovative marketing plan that will leave nothing to chance. Just call, and I would be happy to share the DIFFERENT and SUCCESSFUL TOOLS I utilize on each of my listings. I have lived in Connecticut for over 35 years. I practice Real Estate in Fairfield County, New Haven County and Litchfield County. This includes, but is not limited to Bethel, Bridgewater, Brookfield, Danbury, Harwinton, Kent, Litchfield, New Fairfield, New Milford, Newtown, Oxford, Ridgefield, Redding, Roxbury, Sherman, Southbury, Warren, Washington, Westport and Wilton.