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IRS Shares Three Tax Tips to Help You Save

IRS Shares Three Tax Tips to Help You Save

ALTHOUGH THE YEAR IS ALMOST OVER, you still have time to take steps that can lower your 2013 taxes.
Taking these steps can help you save time, tax dollars, and help you save for retirement. Here are three
year-end tips:

1. Start a filing system. It can be as simple as saving receipts in a shoebox, or more complex like
creating folders or spreadsheets. It’s always a good idea to save tax- related receipts and records. Keeping good records now will save time and help you file a complete and accurate tax return next year.

2. Make charitable contributions. If you plan to give to charity,consider donating before the year ends. That way you can claim your contribution as an itemized deduction for 2013.This includes donations you
charge to a credit card by Dec. 31,even if you don’t pay the bill until 2014. A gift by check also counts
for 2013 as long as you mail it in December. Remember that you must give to a qualifi ed charity to
claim a tax deduction. Use the IRS Select Check tool at IRS.gov to see if an organization is qualified.
Make sure to save your receipts. You must have a written record for all donations of money in order to
claim a deduction. Special rules apply to several types of property, including clothing or household
items, cars and boats. For more about these rules see Publication 526, Charitable Contributions.

3. Contribute to retirement accounts. You need to contribute to your 401(k) or similar retirement plan by Dec. 31 to count for 2013. You also have until April 15, 2014, to set up a new IRA or add money to an existing IRA and still have it count for 2013. The Saver’s Credit, also known asthe Retirement Savings Contribution Credit, helps low- and moderate-income workers in two ways.It helps people save for retirement
and earn a special tax credit. Eligible workers who contribute to IRAs, 401(k)s or similar workplace retirement plans can get a tax credit on their federal tax return. The maximum credit is up to $1,000,$2,000 for married couples. Other deductions and credits may reduce or eliminate the
amount you can claim.

for more information from the IRS on how to save click here

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