Commit to maximizing your retirement plan contributions. You’ll lower your 2007 taxable income and enhance your nest egg to boot.
Review your withholding or estimated tax payments now. A large tax refund or amount due on your 2006 tax return might require an adjustment to your Form W-4 or to your quarterly tax payments.
Remember the “kiddie tax” now applies until your child reaches age 18. This might be a good year to consider a 529 college savings plan as an alternative to transferring funds to a child’s account.
Don’t forget to take advantage of available energy tax credits this year. Qualified home improvements can trim your utility bills and lower taxes too.