Preparing your tax return every year is a hassle. But you can boost your spirits by taking full advantage of the tax goodies available on your 2008 return. Although everyone’s situation is different, here are seven proven ways to cut your tax bill.
Alert: Some items may be affected by the new economic recovery law, but the changes generally don’t apply to deductions and credits on your ’08 return.
1. Bulletproof charitable gift deductions
Many taxpayers still are getting acclimated to the tougher substantiation rules for charitable donations that took effect in 2007.
Strategy: Assemble the records of all charitable gifts made last year. Be prepared to back up the entries on your ’08 return.
Under current rules, the IRS does not allow a deduction for a contribution of cash, a check or any other monetary gift of less than $250 unless you’ve maintained a bank record of the contribution (a bank statement or canc...(register to read more)