Comments on: How to Cut Your 2012 Tax Bill Today

By: Simon Campbell

Simon Campbell — Fri, 08 Feb 2013 14:17:08 +0000

If you had the unfortunate circumstances to go through a foreclosure or short sale last year, you can be grateful that congress extended the mortgage forgiveness act (American Taxpayer Relief Act of 2012) one more year. This keeps the IRS from charging you income tax on the difference between the sale price of your home and your delinquent mortgage amount.

Additionally, deductions for mortgage interest, mortgage insurance premiums and state and local property taxes, are extended. So even if you lost your home in November, you can still deduct any paid mortgage interest and real estate taxes.

By: Money Roundup: Smaller Paycheck Edition @ Financial Ramblings

Money Roundup: Smaller Paycheck Edition @ Financial Ramblings — Sun, 03 Feb 2013 17:58:45 +0000

[…] How to Cut Your 2012 Tax Bill Today — Believe it or not, it’s not too late to cut last year’s tax bill. How? By contributing to an IRA before April 15th. […]

By: Average Joe

Average Joe — Fri, 01 Feb 2013 07:39:29 +0000

In reply to Kim@Eyesonthedollar. Bingo! Sweet addition!

By: Average Joe

Average Joe — Fri, 01 Feb 2013 07:39:05 +0000

In reply to KC @ genxfinance. True to a degree. The IRS will be all over you if you try and pay yourself less than the going wage just to cheat on your taxes. This is also great advice for the current year, but won't help at all in the prior year like an IRA or SEP contribution.

By: Untemplater

Untemplater — Fri, 01 Feb 2013 07:17:38 +0000

Augh I have a lot to get together for taxes in the next couple weeks. I’m trying to be more organized this year though so I can quickly see what docs I’m still waiting for and what I have left to do before I can file.

By: KC @ genxfinance

KC @ genxfinance — Fri, 01 Feb 2013 06:27:47 +0000

If you have a business, I heard that it would also help if you pay yourself less or hire your family to lessen your tax bill. Not sure about this but will research more.

By: Kim@Eyesonthedollar

Kim@Eyesonthedollar — Fri, 01 Feb 2013 04:26:20 +0000

Also don’t forget that you can still contribute to an HSA until April 15th for 2012. We were able to get our MAGI down enough with HSA contributions to deduct my husband’s masters degree last year. It saved us around $2K.

By: Lance @ Money Life and More

Lance @ Money Life and More — Thu, 31 Jan 2013 23:27:47 +0000

I might consider the SEP for 2013 but not 2012. It is definitely something I need to look into.

By: John@MoneyPrinciple

John@MoneyPrinciple — Thu, 31 Jan 2013 22:34:26 +0000

Grr. Tax. There are all sorts of issues here in the UK about collecting taxes from a few multinationals but they bang on about individual taxes. We have similar tax ‘vehicles’ called ISAs and SIPPs within which you can trade, store money and stuff. We need to look at these next year! (That’s next tax year which starts in April…. don’t ask!)

By: DC @ Young Adult Money

DC @ Young Adult Money — Thu, 31 Jan 2013 16:05:04 +0000

For the SEP IRA, does that only apply to full-time employees? What if you have a part-time employee working 15-25 hours a week? Or what if it’s a contractor who gets paid per project (i.e. per blog post written, ad hoc web projects, etc.)?