- Days left

There's still time to create deductible expenses for 2007

Put away the noisemakers! It isn't the new year yet. And you're probably searching around the net thinking, how can I decrease my tax burden before the year expires?

If you're on the West Coast like me, you may still have time to use up your health care flexible spending account by going to an enterprising optometrist, dentist, or chiropracter. If you've spent more than (or very, very close to) 7.5% of your gross income in health care expenses this year -- which is a LOT of health care expenses, by the way -- you might want to pay a couple more bills to take advantage of those expenditures.

The easiest way to create deductions in the last few hours of the year is, of course, charity. Give until you can't give any more, and most charitable institutions allow you to use your credit or debit cards to pay online, and it will count for 2007, right up until midnight. If you must send money to your church, community food bank, or other small non-credit-accepting institution, run! Bike! Drive! (careful! It's a party night!) to the nearest post office that postmarks until midnight, and stick a check in the mail.

Finally, if you're self-employed or have a small business whose expenses you write off on your taxes, and you use the cash method of accounting, now is the time to pile on those profit-reducing costs! I make a small income photographing knitting and designing knitting patterns, so I have been struck with the unavoidable compunction to go buy yarn for my next creation. If you don't have any shops nearby open, turn again to the web. Do you need books? Amazon.com's still open. Paper? Ink for your printer? You get the idea.

Note that small incomes like mine are only considered self-employment if you make a profit in one out of every three years. Otherwise, it's a non-deductible hobby.

Increase your money and finance knowledge from home

Advice for Recent College Grads

Prepare yourself for the "real world".

View Course »

What is Inflation?

Why do prices go up?

View Course »

TurboTax Articles

Video: Tax Guidelines About Gifting

Note: Some of the content of this video applies only to taxes prepared prior to 2012. It is included here for reference only. Find out the tax guidelines about gifting with help from TurboTax in this video on tax tips.

Video: What are Income Tax Rates?

Note: The content of this video applies only to taxes prepared for 2010. It is included here for reference only. Income tax rates change depending on both the amount of money you make and how you made it. Find out about income tax rates with help from TurboTax in this video on tax tips.

Video: How To Reduce Errors on Your Tax Return

Did you know that errors on your tax return can affect the amount of your tax bill and the amount of time it takes to get a refund? Fortunately, TurboTax helps you avoid errors AND be sure you're getting all the tax deductions and credits you deserve.

Does Your Company Need to File Form 1095-B?

A company is responsible for filing IRS Form 1095-B only if two conditions apply: It offers health coverage to its employees, and it is "self-insured." This means that the company itself pays its employees' medical bills, rather than an insurance company. A company that doesn't meet both conditions won't have to deal with Form 1095-B. Its employees might still receive a 1095-B, but from their insurer, not the employer.

Video: Who Qualifies for an Affordable Care Act Exemption (Obamacare)?

The Affordable Care Act requires all Americans to have health insurance or pay a tax penalty. But, who qualifies for an Affordable Care Act exemption? Find out more about who qualifies for an exemption from the Affordable Care Act tax penalty, how to claim an exemption on your tax return and how the Affordable Care Act may affect your taxes with this video from TurboTax.

Add a Comment

*0 / 3000 Character Maximum