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November 23, 2004 10:26 PM

Last Chance to Trim Your Taxes


Excerpt: But just because Congress did little to cut your taxes this year doesn't mean you're out of luck. Actions you take over the next few weeks can pay off handsomely.


Here's a new twist on the old "What would happen if a tree fell in the forest" riddle: What would happen if Congress passed a big tax cut and nobody noticed? We might just find out this year.

Although the fourth tax cut in as many years is being touted as saving taxpayers nearly $150 billion over the next decade, its real impact will be muted. The primary goodies restore tax benefits that expired at the end of 2003 (the loss of which you wouldn't have noticed until you did your 2004 return next spring) or prevent other breaks from disappearing at the end of this month, which would have resulted in tax hikes in 2005. Bottom line: The 2004 tax cuts (see the highlights below) are more political than pocketbook.

But just because Congress did little to cut your taxes this year doesn't mean you're out of luck. Actions you take over the next few weeks can pay off handsomely.

Save now and later
The best way for most of us to reduce the IRS's take is to save for the future by contributing to tax-deferred retirement plans. The more money you funnel into an employer-sponsored 401(k) -- or a similar 403(b) or 457 plan if you work for a school, hospital, or state or local government -- the less the IRS gets to tax. If your company offers a plan, you can contribute up to $13,000 this year -- or $16,000 if you'll be age 50 or older by the end of this year and qualify for a $3,000 "catch-up" contribution.

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Your Next Tax Hike (November 26, 2004)
A few days after the election President Bush made it clear he sees no reason to back down on any of his promises--including the one to make his tax cuts permanent. Yet Bush's resoluteness aside, there are people like Robert Gordon, president of investment firm ...
Line Up Your Tax Deductions (November 26, 2004)
Welcome to December, turning the calendar to the time when we have barely one month to take steps to reduce our income tax bill for 2004. When Jan. 1 rolls around, it will be too late to do much about taxes on income earned this ...
Know Your Optimal Year-End Tax Strategies (November 22, 2004)
There is a rash of new tax laws that millions of Americans will need to consider when mapping out their year-end tax-saving strategies. Among them, Congress approved tough new rules for car donations to charity, effective next year. Thus, if you itemize your deductions and ...
To the Point of No Returns (November 22, 2004)
New Haven — Since his re-election, President Bush has made it clear that he intends to fulfill his campaign promise to "lead a bipartisan effort to reform and simplify the federal tax code." But many in Washington are already betting that major changes won't happen ...

Read all 46 posts in the same category of Tax:

Few People Aware Of New State Sales Tax Deduction - Dec 17, 2004
Ownership Has Its Privileges - Dec 12, 2004
Bush Rejects Raising Taxes to Pay for Social Security Plan - Dec 12, 2004
Social Security Reform, With One Big Catch - Dec 12, 2004
Bush Eyes Social Security Threat - Dec 12, 2004
Put Away Your Check Book - Dec 10, 2004
IRS to Issue Rules On Tax Shelters - Dec 09, 2004
Year-End Tax Planning Moves for Small Businesses - Dec 08, 2004
Give Tomorrow, Get the Tax Break Today - Dec 08, 2004
2004 Year-End Tax Planning Moves - Dec 08, 2004
CCH Capital Changes Identifies Top Ten Tax-Complex Corporate Actions for 2004 - Dec 07, 2004
GainsKeeper Suggests Year-End Tax Planning Strategies to Minimize 2004 Taxes Owed - Dec 07, 2004
Stocks That Need Special Tax Moves - Dec 07, 2004
Poll: Social Security Needs Reform - Dec 07, 2004
Options Open On Tax Reform - Dec 07, 2004
More Tips to Slash Tax Tab - Dec 05, 2004
10 Tax Time Bombs To Defuse Now - Dec 04, 2004
Property Taxes Rising Nationwide - Dec 04, 2004
Noncash Gifts To Charities Can Be Deducted - Dec 04, 2004
2004 Year-End Tax Planning Moves - Dec 02, 2004
Get Your Car Ready for a Fast Giveaway - Dec 02, 2004
Don't Fear the Use-It-Or-Lose-It Rule - Dec 02, 2004
Partnerships Lose Tax Exclusion On Canceled Debt - Dec 01, 2004
A Tax Break for Your Kidney - Dec 01, 2004
8 Profitable Year-End Tax Moves - Nov 29, 2004
Tax Break Curbed: Changes To Donation Write-Off May Hurt Charities - Nov 28, 2004
When Is That Holiday Turkey Taxable? - Nov 26, 2004
Your Next Tax Hike - Nov 26, 2004
Line Up Your Tax Deductions - Nov 26, 2004
Know Your Optimal Year-End Tax Strategies - Nov 22, 2004
To the Point of No Returns - Nov 22, 2004
Turning the Tax Tables to Help the Poor - Nov 22, 2004
With Checkbook in Hand, Think of Uncle Sam - Nov 22, 2004
Moratorium On Web Tax Advances - Nov 17, 2004
25 Ways to Spend Your Flex Account - Nov 17, 2004
Bush Advisors Urge Deeper Tax Cuts In 2nd Term - Nov 17, 2004
The Best Way to Save on Health-Care Costs - Nov 16, 2004
Use it or Lose It - Nov 16, 2004
A New Twist To Your Tax Bill? - Nov 16, 2004
Taxes and Consequences: The Second Term Begins - Nov 13, 2004
Microsoft Payout Tempts Investors On Tax Strategy - Nov 12, 2004
What the Recent Tax Changes Mean to You - Nov 07, 2004
Highlights of 2004 Changes in the Income Tax Laws - Nov 04, 2004
Bush's Tax Cuts Are Unfair ... To the Rich. - Nov 03, 2004
No Rest for the Bleary: New Tax Turns to Ponder - Nov 03, 2004