You can accelerate your
deductions into this year by:
- Making next year's charitable contributions
this year instead
- Prepaying deductible interest
- Paying estimated tax installments in December
instead of January
- Accelerating capital losses
- Taking advantage of flexible spending
accounts, Archer MSAs, and cafeteria plans
- Making January's alimony payment in
December
- Prepaying next spring's college costs in
December (if it qualifies you for added
Hope/Lifetime Learning credit)
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Higher tax bracket
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Lower tax bracket
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You can postpone your income
into the following year by:
- Delaying the collection of any debts that you
are owed
- Deferring compensation
- Deferring year-end bonuses
- Delaying the exercise of incentive stock
options (ISOs)
- Transferring funds to bank certificates and
Treasury bills in order to delay tax on the
interest
- Setting up a tax-deferred annuity or
retirement account
- Deferring the sale of capital gain property,
or taking installment payments rather than a
lump-sum payment
- Postponing receipt of distributions that are
over the required minimum from retirement
accounts
- Increasing your contributions to your
company's 401(k) plan or other tax-deferred
plans
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