Want to lower your 2011 tax bill? The time for action is running
out, so consider these tax-savers now.
• You can choose to deduct sales taxes instead of local and state income
taxes. If you’re planning big ticket purchases (like a car or a boat), buy
before year-end to beef up your deductible amount of sales tax.
• If you’re a teacher, don’t overlook the deduction for up to $250 for
classroom supplies you purchase in 2011.
• Consider prepaying college tuition you’ll owe for the first semester of
2012. This year you can deduct up to $4,000 for higher education expenses.
Income limits apply.
• Max out your retirement plan contributions. You can set aside $5,000 in
an IRA ($6,000 if you’re 50 or older), $11,500 in a SIMPLE IRA ($14,000 if
you’re 50 or older), or $16,500 in a 401(k) plan ($22,000 if you’re 50 or
older).
• Establish a pension plan for your small business. You may qualify for a
tax credit of up to $500 in each of the plan’s first three years.
These possibilities for cutting your taxes are just the
starting point. Contact us at (219) 769-3616 or e-mail your
questions to tlynch@swartz-retson.com now for a review of
your 2011 tax situation and tax-saving suggestions that
will work best in your individual circumstances.
SWARTZ, RETSON & CO., P.C
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