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Looking for ways to boost your cash flow? As a small business consultant, I make these recommendations to my cash strapped small business clients: 1. Shoeboxes are for shoes, not business records. Pardon my candor but, you will never have a...

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Seven Ways To Save On Taxes Next Year

Nobody likes paying taxes, so the procrastination factor when preparing them tends to be high. But the good news is that there are some things you can do now that will help you prepare for next years taxes. Here are seven great tax saving tips so that you can keep more of your hard earned dough!

1. Pay your January 1st mortgage payment a day early. If you mail out your mortgage check on December 31st, the interest deduction for that month will be good for the current year. This is true even if the check doesn't get cashed until after the new year.

2. Make a last minute donation. Under that same philosophy, consider putting any last-minute charitable donations on your credit card (for those that will allow it) on or before December 31st.

3. Defer that income one more day. This works with investments as well as earned income. If you get a year end bonus, request that it come in January rather than in December. If you are self employed, you can do all your billing at the end of the month so that the payments will come in after the first of the year. In regards to investments, some will allow you to postpone paying taxes until a later year even if the income is earned this year.

4. Look for every available credit and deduction. This tax saving tip seems obvious, but people miss deductions and credits that apply to them all the time. A credit is a dollar-for-dollar reduction in any amount you might owe, so the effects of having one or two of them on your return can be dramatic.

5. Donate your old clothes and furniture to your favorite charity. Cleaning out the attic, the closets, that spare room, and

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the garage is not only purifying but will help to decrease your taxes. Put everything together and then take the load to your favorite charity or charities. Make sure to get a receipt for your records. The wholesale fair market value of the items you donated is allowed as a charitable deduction.

6. Give your kids a job, in other words, put them on the payroll. If you have kids, and they are over fourteen, you can have them do some work for you around the house and pay them on a part time basis. That will allow you to shift some of your income that would be taxed at a higher tax bracket to their lower tax bracket. However there is one warning; watch their earnings because they will be considered when they get ready to go to college and their financial aide could be affected.

7. Invest in your children's names. Your kids can each earn up to $700 in investment income without paying any taxes if they are over fourteen.

As painful as taxes and any related thoughts of them can be, by following these great tax saving tips, you will save money this year--and the next. One final tip; don't procrastinate until the last minute! Preparing for your taxes year round will force you to keep your eyes open for saving possibilities, and will likely reduce your tax bill even more!

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If you would like to get more credit information you can visit our website which contains many credit resources. http://www.my-credit-report.info This article is copyright 2005, but can be freely reprinted, as long as no changes are made, including hyperlinks.