Some more year-end reviews:

Review your income, expenses, and potential expenses. Do a profit and loss and see if you need to spend some additional money in 2008. Remember, even if you charge items on your Mastercard or Visa and the bill does not come until January, you can take the deduction in 2008 because the merchant was paid in full with your card.

If you do not need to spend anything more on expenses, defer income. Do not send any invoices out until late December so you are more likely to be paid in January. If you have W-2 wages, ask your employer to delay your bonus until January.

Be sure to use all funds in your flex spending account. Buy those new glasses now or get to the dentist before the end of the year.

Pay your January mortgage payment at the end of December so you get an extra amount of interest deduction this year.

Prepay your estimated taxed by December 31. This will allow you to deduct the federal taxes on the state and the state taxes on the federal for 2008 not 2009.

 
This information is provided in an effort to help you gather and organize the information necessary to file your individual or small business income tax return. While these financial tools are not a substitute for financial advice from a qualified professional, they can be used as a starting point in your decision making process.