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Fourth Quarter Moves to Lower Your Tax Liability

The last quarter of 2011 in upon us, and now is a great time to reflect on how you can reduce your tax liability [3] for the year. There are still some moves you can make during the last part of the year to reduce the amount of money that you owe in taxes. Get ready for tax season now, plan ahead for your deductions, and you will have a smoother experience.

You can still get some tax credits for energy efficient upgrades to your home, but not everyone I planning to add better windows to a home, or install a solar power system. Instead, you can also do some things now to lower your taxable income for 2011.

Tax Deductions Available for the End of the Year

Really, you can take these tax deductions all year. However, many people don’t think about how certain spending can help you reduce your taxable income – and how much you owe the government. Remember, though, that a tax deduction isn’t the same as a credit; you won’t get a dollar for dollar reduction in your liability (as you would with a credit), but the right deduction can keep you in a lower tax bracket [4], and lower the amount of income you are required to pay taxes on.

Here are a few basic things you can do to lower your taxable income right now:

With a little planning an foresight, you can spend a little more money and reduce your taxable income, and pay less to the government.

(Photo: davedugdale [7])