No, it’s not too late to take steps to reduce your tax bill for 2009! Here are some ideas:

1. Sell Stocks Now That You Were Thinking about Dumping.
   If you were thinking about selling some stocks that have gone down in value, make sure you do by the end of the year so you can deduct the losses.
2. Give Money to Charity.
   Why not take some money from your holiday budget and give it to charity instead of buying gifts? Do your friends really need any more candles, hand lotion, ties or cologne? Give your friends a card telling them you donated money in their names. Don’t think this is a good gift? I would appreciate it.
3. Donate Used Goods to Charity.
   Another idea to get charitable deductions is cleaning out your closets of old clothes. Drop them off at a charity resale store to get a deduction. The IRS has tightened it’s rules on donating clothes, so you need to be a little careful on filling out your tax return. Check the Salvation Army’s guide on what clothes are worth as far as tax deductions.
4. Put Your Holiday Bonus in an IRA.
   If you are one of the few American workers lucky enough to get a bonus, this can go along way to reduce your taxes. Deposit your whole check and and take advantage of this idea. If you don’t have an IRA, find a broker you trust and open an account.
5. Pay Deductible Expenses By Credit Card by the End of the Year.
   Even if you pay off charges made in 2008 in the month of January 2009, any expenses paid for with a credit card in 2008 still count towards 2009. Examples of deductible expenses: medical bills and moving expenses. Get out that credit card now!
6. Increase Your 401K deduction.
   No we’re not crazy. Even with the craziness of the stock market, putting away tax free money at a savings of 33% is always a good idea. In addition, since the market is down, you maybe getting an incredible deal purchasing stocks so cheaply.
7. Make an Extra Mortgage Payment
   Not only will you actually reduce the overall interest on your loan over the life of the loan, but you can get an extra interest deduction on your taxes next year.

Related posts:

1. Stock Market 101 – Developing a Winning Investment Strategy I know what you’re thinking – the terms “stock market”...
2. Credit Card Accountability Bill Narrowly Passes Senate Banking Committee Last month, the Senate Banking Committee narrowly approved legislation that...
3. Recession-Busting Tips: How to Make Your Clothes Last Longer Just as the cornerstone of green energy is conservation, sometimes...
4. Cheap and Easy Fixes to Save Money on Your Heating Bill Now that winter is upon us, it’s time to crank...
5. Senate Passes Bill Guaranteeing Zero Percent Mortgages for Illegal Aliens The Senate today passed the ZIMIA (Zero Interest Mortgage Illegal...