- Days left

9 Year-End Tax Tips for Non-Millionaires

×
group crowd walkingIf you're a millionaire, lowering your taxes can be complicated, involving shelters in the Cayman Islands, Swiss bank accounts, fancy trusts, and other strategies -- some of which are only arguably legal. But for the rest of us who are not near the top tax brackets, minimizing payments to Uncle Sam can be simpler.

Here are some tips to help you lower your tax bill. Note that some of them require you to act before 2013.




Increase your money and finance knowledge from home

Introduction to Preferred Shares

Learn the difference between preferred and common shares.

View Course »

What is Inflation?

Why do prices go up?

View Course »

TurboTax Articles

What is IRS Form 8824: Like-Kind Exchange

Ordinarily, when you sell something for more than what you paid to get it, you have a capital gain; when you sell it for less than what you paid, you have a capital loss. Both can affect your taxes. But if you immediately buy a similar property to replace the one you sold, the tax code calls that a "like-kind exchange," and it lets you delay some or all of the tax effects. The Internal Revenue Service (IRS) uses Form 8824 for like-kind exchanges.

What are ABLE Accounts? Tax Benefits Explained

Achieving a Better Life Experience (ABLE) accounts allow the families of disabled young people to set aside money for their care in a way that earns special tax benefits. ABLE accounts work much like the so-called 529 accounts that families can use to save money for education; in fact, an ABLE account is really a special kind of 529.

What is IRS Form 8829: Expenses for Business Use of Your Home

One of the many benefits of working at home is that you can deduct legitimate expenses from your taxes. The downside is that since home office tax deductions are so easily abused, the Internal Revenue Service (IRS) tends to scrutinize them more closely than other parts of your tax return. However, if you are able to substantiate your home office deductions, you shouldn't be afraid to claim them. IRS Form 8829 helps you determine what you can and cannot claim.

What is IRS Form 8859: Carryforward of D.C. First-Time Homebuyer Credit

Form 8859 is a tax form that will never be used by the majority of taxpayers. However, if you live in the District of Columbia (D.C.), it could be the key to saving thousands of dollars on your taxes. While many first-time home purchasers in D.C. are entitled to a federal tax credit, Form 8859 calculates the amount of carry-forward credit you can use in future years, not the amount of your initial tax credit.

What is IRS Form 8379: Injured Spouse Allocation

The Internal Revenue Service (IRS) has the power to seize income tax refunds when a taxpayer owes certain debts, such as unpaid taxes or overdue child support. Sometimes, a married couple's joint tax refund will be seized because of a debt for which only one spouse is responsible. When that happens, the other spouse is said to be "injured" and can file Form 8379 to get at least some of the refund.

Add a Comment

*0 / 3000 Character Maximum

11 Comments

Filter by:
democrackso

I wonder if Obama will use every loophole to get himself another $25,000.00 tax refund this year.

January 01 2013 at 2:40 PM Report abuse +1 rate up rate down Reply
susan

Many have said to heck with it, pack up their goodies and buy a travel trailer from 2000.00 to 5000.00, and the ones I have seen look pretty nice, anyway they leave the home to the bank, and off they go, no mortgage to pay and the retirement covers the low lot rent and utilities..Maybe the older people see what many of us that are hanging on dont...Why pay for something and not live long enough to enjoy it..or no job to pay it..
Merry Christmas to all...Prayers or not, hang on as its going to get better in fall of 2014, per the top dogs that tell the truth....

December 25 2012 at 5:03 AM Report abuse +1 rate up rate down Reply
investrman

As a US small business owner and someone with 2 signed letters back from Obama in last 4 years, I will tell you, he and his hypocritical double standard liberal agendas will be the final nail in the coffin of the USA as it was meant to be.They DO NOT care about traditional US families or serious small business growth or supporting anythng of former work ethic which made this nation, and are so far off the point of reality it shows in his letters to us. They want to punish and encumber those who do not go with their liberal agenda, to create a larger lazier pool of followers who want everything for free and easy from the Govt, while these uber-rich liberal types become wealtheir in the progress from the ignorance.

Already his Admin has gotten my small business last year placing us into a 38.33% bracket which makes no dammnnn sense to see. IRS agent already went to another small business owner I know in PA too saying they wanted to only speak about some lapse in a monthyl tax filing doc which makes no sense either, but they see he built a new $40,000.00 pole barn building on his property for his busienss and I suspect it is backdoor lifestyle audit approach which is suppsoed to be outlawed long ago!

December 24 2012 at 12:08 PM Report abuse +5 rate up rate down Reply
worried man

Just turn everything off in your house and get a piggy bank

December 24 2012 at 12:02 PM Report abuse +3 rate up rate down Reply
lekpooh

what a bunch of ****

December 23 2012 at 7:15 PM Report abuse +3 rate up rate down Reply
ha6ai

HuffPuff and AOL are such liars: Being "near the top tax brackets" does not make you anywhere vaguely close to being a "millionaire or billionaire". It means you earn less than one-fifth of a million a year if you are a single or one-fourth if you file jointly. It is a "BIG LIE".

It is also a BIG LIE to suggest that those middle class people are engaged in illegal tax dodges like hiding income from "Cayman Islands" or "Swiss" accounts.

The AOL/HuffPuff liars assume you are fools.

December 23 2012 at 3:18 AM Report abuse +1 rate up rate down Reply
1 reply to ha6ai's comment
vlady1000

Yep, they are confused between a net worth of $1Mil (which tech makes you a "Millionaire)" and someone the makes $1Mil/year. A huge difference. BTW a net worth of $1mil is not that uncommon now days.

December 30 2012 at 4:41 PM Report abuse rate up rate down Reply
crimeslawyer

Tax tip number ten: Flee the United States to avoid confiscation of the rest of your property.

December 22 2012 at 6:03 PM Report abuse +1 rate up rate down Reply
Ed from Red Hook

What makes one a millionair?

December 22 2012 at 11:32 AM Report abuse rate up rate down Reply
2 replies to Ed from Red Hook's comment
ha6ai

According to Obama and the lefties: earning over $200,000 per year if you are single (about one-half of taxpayers), or $250,000 per year if you file a joint return. Their war is not really on the "rich" - it is a war on the middle class.

The lefties are lying demagogues. But the amazing thing is that they are utterly without any shame - they just continue repeating the same obvious outrageous Big Lie.

December 23 2012 at 3:09 AM Report abuse rate up rate down Reply
ccm989

The ability to spell helps.

December 31 2012 at 12:14 PM Report abuse rate up rate down Reply