The hustle and bustle of the holiday season seems hardly the time to think about anything other than shopping .
"(Are you ready and thinking about doing your taxes?) Uh, no and uh no and no and I'm not feeling guilty about any of that, honestly, not the shopping or the taxes," said Derek Worthington, a taxpayer.
But maybe he should. Experts say the year's end is the perfect time to consider a few tips that can help lower your tax bill."There's a lot of benefits that are out there that a lot of people don't know about or are misinformed about," said Jorge Quintana, of Smarttax.
"I don't have it together and if you have some tips, I'd love to hear them," said Margenette Moore-Roberts, a taxpayer.
Contributing to a retirement plan, like a 401k or 403b, is one way to lower your taxable income.
Also, converting from a traditional IRA to a Roth IRA will mean tax-free income down the road.
Putting money in a 529 college plan offers tax-deferred investment and tax free withdrawal for education costs.
And remember, you can take a tax deduction for donated household items worth under $5,000 without a formal appraisal of their value.
Jorge Quintana also suggests making some charitable donations with your credit card.
"I put it on my credit card now, my statement would come in January. However, I do get that deduction for this year and pay for it next year," Quintana said.
Energy saving home improvements, like insulation or double-paned windows, may be another over-looked way to be eligible for energy tax credits, up to $500.
"Contact your tax preparer. Contact your accountant, and see if there is something you can do now that will help you next month," Quintana said.
In other words, preparation is the key to minimizing next year's tax hit.
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