Year-end Tax Planning
The end of 2010 is quickly approaching which means it’s time to do your final tax planning. You want to ensure that when April 15th comes around you don’t owe a small fortune and be left scrambling to find money.
Most estimated tax payments are not due until the 15th of January but there is a great advantage to making some payments earlier. If you itemize your deductions (versus taking a standard deduction), any payments made to state and local taxing authorities prior to December 31st are tax deductible in the year that they are paid- meaning you’d get an advanced tax deduction for your federal tax return.
As I often do, I’ll quote my old boss Marty (picture the Swedish Chef from the Muppets), “Failing to plan is planning to fail.” Let’s plan now and save you some money on your 2010 tax liabilities.