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Tax moves to make in December 2011

December 1, 2011

Welcome to December! Are you ready for the holidays? Me neither.

How about taxes? That's OK. I don't blame you for putting tax tasks at the bottom of your to-do list. But you shouldn't ignore them completely. There are some things you can do in the next 30 or so days to help cut your 2011 tax bill.

December_tax_moves_160Start with everybody's favorite task: filling out your 1040.

Wait! Don't go! You don't have to do it for real right now. But a mock tax return with the major entries, or good estimates of the amounts, will help you find out now whether you'll owe the IRS a lot or be getting back a refund.

Either result could mean you need to take some additional steps while you still have time — until Dec. 31 — to make a difference to your 2011 taxes.

You can adjust your withholding to make up some of the impending shortfall or get a few extra dollars in your December paychecks.

You can make charitable donations that might be deductible.

Or make a few extra miscellaneous expenditures to get you over that itemized deduction's 2 percent threshold. Ditto for medical expenses that must exceed 7.5 percent of your adjusted gross income.

Or contribute to a retirement plan. This applies to self-employed folks, too.

And don't forget about using all of your flexible medical spending account so you don't lose it.

Want more tax moves to make this crazy final month of the year? Check out the the December Tax Moves over there in the ol' blog's left column. Just scroll down a bit and you're set, with plenty to do taxwise for the rest of this month.

You also might find these posts of interest:

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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