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Re-activateWith just a few days left in the year, the number of moves you can make to reduce your 2009 tax bill are dwindling. But there are a few:
• Increase charitable donations. The charity must acknowledge that the contribution was made on or before December 31. The acknowledgement letter itself can be dated later.
• Buy a new car. The cash-for-clunkers program is over, but for this year only, state tax on vehicles of up to $49,500 is deductible for many individuals, even those who don't itemize.
• Contribute to a 529 college-savings plan. Depending on your state and the plan you choose, you may be able to deduct your contribution from your state income tax return. Starting in 2009, the tax-free withdrawals from such plans can be used for computer technology, not just tuition and books. Click here for Consumer Reports Money Adviser's evaluations of 529 plans.
• Sell losing investments to offset gains—or reap gains and offset those with prior losses. Taxpayers are entitled to carry over $3,000 a year in capital losses until those losses are used up.
Click here for details on more year-end tax moves from Consumer Reports.
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