Woodlake

Tax Tips

Jan 21, 2008

By Jill Jacobs

Use these tips to help you gather your 2007 tax information or plan ahead for 2008.

??¢ ??œGreen??? Tax Credits ??“ The hybrid and alternative fuel credits are starting to run out, but if you bought this type of vehicle in 2007, check with your dealer to see if you qualify for the credit. Energy efficiency upgrades to your home may also provide a tax credit for 2007. Notify your tax preparer of any energy upgrades you may have made.

??¢ College Education - There are several tax breaks both for current college students and to sve for college. Notify your tax preparer if you have a college student in your househod or as a dependant or if you are using a college savings account.

??¢ Job Expenses ??“ Don??™t forget to tell your preparer if you have childcare expenses, if you changed jobs or if you have un-reimbursed, non-commute job travel.

??¢ Smart Investing ??“ Regularly consult with your tax advisor when making investment decisions to maximize gains and minimize taxes. A huge gain is only good if it doesn??™t cause a huge tax bill.

??¢ Save for Retirement ??“ The government has several tax deferred methods of saving for retirement. You can make 2007 conributions until April 15, 2008. Please tell your tax advisor if you would like to take advantage of this additional time to get tax savings.

??¢ Give it to Your Kids ??“ You can make up to $12,000 per person per year in gifts. If you don??™t need the money, this is a great way to avoid estate tax. Pleas consult your tax advisor for other ways to reduce estate and gift taxes.