Bank finance articles and tips

Many people complain about paying so many taxes that are deducted from their income leaving them with little to spend for their needs or keep for their savings. But you can actually do something about it before the year ends. If you take the time to do some tax planning, you will have an opportunity to gain refunds by 2012.

There are certain areas where you can enjoy lower taxes. All you need is some research and extra effort and you're on your way to enjoying more cash in your pocket and more savings as well.

401(k)or retirement plan - Keep in mind that your contribution to your plan is not included in your income. As such, you can lower your tax.

Experts suggest directing some of your contributions to your retirement plan. For this year 2011 alone, employees can actually maximize their contributions by as much as $16,500 to retirement plans managed by employers while those 50 years old and above can contribute up to $22,000.

Income tax - There's actually a way which will allow you to enjoy less tax withheld from your paycheck. What you should do is to file a revised Form W-4 with your employer. This will let you claim more allowances of about $250 each month which will reduce your tax withheld. By doing this, you will no longer have to wait for a year to get your tax refund.

Sales tax - Many of you may be unaware of the fact that you can write off sales taxes especially as the year comes to a close. This is possible if you live in a state that does not charge income tax. What you can do is write off the full value of your mortgage interest and itemize other deductions.

Home energy tax - Tax credit for energy efficient homes expires at the end of this year 2011. You might want to take advantage of this period and upgrade your home to make it energy efficient and gain up to $500 tax credit. Keep in mind you have to do the upgrade before December 31 comes.

In addition, homeowners can enjoy bigger credits by installing equipment that uses renewable energy. These include solar panels, small wind turbines and geothermal heat pumps in their primary residence or vacation home. Again, this has to be done before the year ends to claim a credit.

Charity - Giving to charitable organizations is another way of increasing the savings on your tax return as it is tax-deductible. The deduction on your contribution to charity is normally the value of securities on the date the amount was given.

Family estate - You might want to give a part of your estate to a family member and now is the best time. There's no federal gift tax charged on this and you can give up to $13,000 to any recipient. For this year, a married couple can give up to $26,000 for each family member without paying any taxes. But be sure you do it before year-end to avoid the tax.

For information on bankruptcy, finance, credit, bankruptcy lawyers and more, visit http://onlinebankruptcyblog.com.

By Kalyan Kumar
Article Source: http://EzineArticles.com/?expert=Kalyan_Kumar