Saving on your 2008 taxes

April 5, 2009 7:49:25 AM PDT
As we approach the April 15th deadline, it's still not too late to save on your 2008 taxes. Alan Kahn, President of AJK Financial Group, joined us with tips. Can you still make contributions to IRAs?

1. Individuals - IRA's - By April 15th

2008 Individual & Non-Working Spouse $5,000
Catch Up $1,000
Total: $6,000
(2009 Contribution $6,000 + $1,000 catch-up = $7,000)

2. Small Business Owners - SEP IRA's - By Oct. 15th

(May be established and funded at the time of tax return filing which also includes extensions --- October 15, 2009)
Businesses can utilize these funds until their extended tax filing
A 25% DEDUCTION MAY BE OBTAINED UP TO A MAXIMUM DEDUCTION OF $46,000.

2008 = $46,000
(2009 = $49,000)

What are some commonly missed last-minute tax deductions?

1. Long Term Care Insurance

· Individual Medical Expense Deduction- Eligible for the medical expense deduction subject to the floor of 7.5% of adjusted gross income.

· Self-Employed Tax Payers- 100% tax deductible.

2. Refinance Mortgage by December 31, 2008

· Deduct Previously Amortized Points

3. SECTION 529 Plans: NYS & CT Plans

· State Tax-Deduction with NYS & CT Plans (Residents Only)
$5,000 state tax deduction per person
$10,000 (Married couples filing jointly)
(New Jersey Residents ~ No State Deduction)

4. Net Investment Losses

· You can deduct up to $3000 per year against ordinary income
· You can also carry forward balance to future years

5. Charitable Donations:

All Contributions Require Receipts
· Donated items, such as cars, clothing, and household goods must be in "good used condition."

6. Tax Incentives for Energy Efficiency:

· Go Solar ~ 30% Credit Up to $2,000 in 2008
Allows you to claim the cost of installing solar water heating, or fuel-cell equipment in your home.
** No Credit is Allowed for a Swimming Pool or Hot Tub.**

In 2009 - No Cap on Credit!! (30% Credit of Systems Entire Cost)


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