
- Tighten up your home. Add insulation to your home before the year’s end. You just may qualify for a tax credit worth up to $500.
- If you have a child in college, take advantage of the American Opportunity Tax Credit by paying spring tuition before Dec. 31st.
- Donate to charity. Make a charitable donation before Dec. 31st if you itemize. This WILL lower your tax bill. You can use your credit card to make a donation as long as you do it before Dec. 31st (even if you don’t pay the bill until next year). If you are 70½ and older you can donate up to $100,000 from your retirement account. Even though it isn’t deductible it won’t be included in your AGI which could make you eligible for tax breaks, and it will be counted toward your required minimum distribution.
Sandra Block. "Steps you take now can boost tax refund." USA TODAY 13 Dec. 2011: 2B.