Uh Oh!  We only have a couple of days left in 2014?  What can you do to save taxes at this point?  There are still a few options.

Consider paying the balance on your property taxes.  Most property tax is billed in arrears, with half due in the fall and half the following spring.  By paying the spring half now, you can claim that much more property tax on Schedule A if you itemize.  Careful here – if you are subject to the Alternative Minimum Tax (AMT), this prepayment won’t help you.  Taxes deducted on Schedule A are added back in the AMT calculation, meaning you got no benefit for paying early.

The same holds true for state income taxes.  You can make a 2014 estimated payment by December 31 instead of the mid-January due date.  You’ll get the deduction on your 2014 Schedule A, which will lower your taxable income.  Again, if you’re subject to ATM, the early payment doesn’t provide a tax benefit.

There are always worthy charities in need of your donation dollars.  If you itemize deductions, donations are a great way to lower your taxable income while benefiting others.  This close to year end, it might be a good idea to make your donations online to ensure they are received (and receipted) in 2014.

If your company doesn’t provide a retirement plan, consider contributing to an IRA.  In this case, you actually have until
April 15, 2015 to make a contribution deductible in 2014.  There are a few restrictions.  Check with your tax advisor or the IRS website, www.irs.gov, to determine if an IRA is a good option for you.

Even if there aren’t any last-minute tax savings moves you can make, it’s a good idea to start gathering your tax information now.  Set up a file to start gathering year-end forms such as W-2s and 1099s as they arrive in the mail.  Look for those mid-year donation receipts now.  There is nothing more frustrating than trying to gather everything from every corner of the house the weekend before the tax deadline.

To your better wealth,