Worried About Tax Time? Find Out What is Working in Your Favor Already.

Most people don’t think ahead about taxes except for a vague, brooding feeling that it will not be something to look forward to. We thought you might want to know about legitimate savings already possible, a few tips to save some hard earned money. Sometimes the know-how is most of the battle.

1. Experts talk about doing an estimate of your year end taxes. This is smart, because knowing the approximate amount you'll be refunded or owed ahead of time may influence your year-end spending. If you expect a large refund, you can begin planning how to invest that money. If you have a balance due, make a payment now or adjust your withholding through the end of the year so you owe less at tax time.

2. You probably already know to save any receipts for charitable giving, and it would be good to get these gathered together ahead of time if you have not already.

3. Putting in a wind-energy system before December 31^st of this year could save you money in the long run. Here are the qualifications straight from the site:

 “ . . . allows individuals and corporations a credit of 20% of the cost of equipment and installation of a residential or non-residential wind energy system. The credit is to be applied in the year in which the system is purchased and placed into use, and there is no limit to the total amount of the credit. Tax credits that exceed the taxpayer’s income tax liability may be used as credit against the taxpayer’s income tax liability in subsequent years until exhausted.”

This one may not be realistic and/or desirable for the average household, but we threw it in for your amusement or in case you actually were planning to put in a system like this soon.

4. How about an easy one that is based on meeting a straight forward timeline? Make your January mortgage payment by Dec. 31 to increase your mortgage interest deduction.

5. Convert your traditional IRA to a Roth IRA. The gross income cap for who can convert has been removed.

6. Pay your spring college tuition now if you haven't yet reached the Tuition & Fees Deduction $4,000 maximum.