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Smart Tax Moves
You Can Still Make for 2002
(Page 2)
Personal Tax Savings Tips:
On a personal level here are some things you can do to cut your taxes in 2002:
- Prepay some bills
- Make Estimated payment on State taxes
- Prepay April Property Tax
- Prepay January's mortgage
Prepaying 2002 deductible expenses will give you a higher refund this year. But next year, you won't have those expenses. So think about which year will give you the most benefit from that money.
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Sell Stocks with Losses, if you have taxable profits from 1st quarter.
You can instruct your broker to sell specific shares of stock, if you bought the stock more than once. If you sell the most expensive shares, your losses will be the highest, for tax purposes.
- Go through closets and donate unused items to charity Make a list of everything you donate. Don't just say - one bag of clothing. That 'bag' might be worth $30 as a deduction. But that list of all the items, one at a time, might be worth $500. Try it. This really works!
- If using medical reimbursement plan through work - review bills
The big complaint about employer medical reimbursement plans is that if you say you'll spend $4,000 on medical for the year, and you only spend $3,500, you lose that other $500. Don't be a fool. Review how much you've contributed and how much you've submitted in expenses NOW. If you haven't spent as much as you'd planned, take care of few things before the year is up.
Go see your optometrist or ophthalmologist. Get new glasses or contacts.
Sink your teeth into your dental problems. Get your teeth cleaned or that filling replaced.
Planning any elective surgery, like laser eye surgery, or a tummy tuck? Prepay enough to use up that whole shortfall. You can still schedule the surgery for next year - and allocate those expenses to next year's medical reimbursement plan.
- Donate your car to charity
(See: Tax Mama's Article ... Donate Your Car To Charity)
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