Welcome to Our Tax Tips Newsletter:

Continuing our effort to provide you with valuable, practical tax information, we will periodically update this page with useful income tax tips and income tax advice from the best sources -- information on issues that you commonly deal with. Be sure to check our newletter from time to time to stay on top on of the latest and most effective tax strategies.

TaxEdge will provide income tax tips that will help you save money when it’s time to file your tax returns. It’s a good idea to use a well planned strategy so that you aren’t surprised in April. Using TaxEdge Income Tax Preparation Software and keeping good records could mean the difference between paying a large chunk of money in April and receiving a big refund check. Use our income tax tips as part of your ongoing preparation.

As 2008 heads into the fourth quarter, taxpayers who want to minimize their tax burden for this year and next have a range of options, but also face a considerable amount of uncertainty.

"Every tax year, there are actions you can take before year's end, and others you can delay until next year, that will have a positive impact on your tax bill," said John L. Duoba, managing editor of Business Owner's Toolkit. "This year is no different."

Congress may act in a special lame-duck session and make changes to the Tax Code before the end of the year. Another economic stimulus bill is expected to be passed, and the changes in power in Washington have many taxpayers unsure about the future of current tax laws.

With many key tax provisions uncertain, there are still some general rules that will help many people. Tax planning begins with such simple things as knowing your tax bracket--the percentage at which your top dollar of income will be taxed. Brackets currently range from 10 to 35 percent. The income levels at which the brackets begin and end are adjusted annually for inflation.

As a general rule, it's better for anyone to pay a tax later than sooner, but in addition, people in higher brackets benefit from the annual indexing of the brackets and other items for inflation, so more of their income will be taxed at lower rates in 2009 than in 2008.

You can exercise control over the timing of deductions, as well as income. If you have a property tax bill for 2008 that's due in January, you can pay it in December to clinch a deduction on your 2008 return. Similar opportunities may exist with scheduling elective medical procedures or making a charitable contribution.

The question is whether accelerating deductions into the current year is always the best strategy. Sometimes it is and sometimes it isn't.

"If your itemized deductions are close to the size of your standard deduction, you're often better off 'bunching' deductions in alternate years. That can give you a significant amount of itemized deductions in, say, odd years while you take advantage of the standard deduction in even years," said Mark Luscombe, JD, CPA, TaxEdge principal federal tax analyst.

For more information on specific actions you can take on income and deductions, as well as tips on special tax breaks for housing, moving, vacation homes, health plans, retirement savings, withholding and more, see our complete round-up.

Stay tuned to TaxEdge for the latest information and changes regarding federal tax obligations!

Income Tax Tips from the 2010 Tax Guide

Reducing Your Tax Rate
A basic understanding of the income tax brackets can help you to make sound tax planning decisions.   For further advice on how to manipulate your income and expenses, please read Reducing Your Tax Rate.

Reporting a Child's Income
The tax rules regarding a child's unearned income can be tricky. Without careful planning, this money might be taxed at very high rates.   For more on this subject, please review Reporting a Child's Income.

Gifts to Charities
It's the season of giving, and for good reason. A few well-timed donations could help some needy charities and reduce your tax bill.   For more on this topic, please review Gifts to Charities.

The Home Mortgage Interest Deduction
The tax code encourages homeownership by allowing taxpayers to write-off the cost of mortgage interest, under certain conditions.   To learn more about lowering your tax bill in this way, please read The Home Mortgage Interest Deduction.

Tax News

Lawmakers May Deliver Small Business Tax, Pension Relief Before Year-End
Congress is contemplating additional stimulus and tax measures in a special December lame-duck session.    For further details, please read Lawmakers May Deliver Small Business Tax, Pension Relief Before Year-End.

Congress Passes Tax Extenders as Part of Bailout Bill
In an effort to increase support for its economic rescue plan, congressional leaders inserted a number of year-end tax measures that Congress was scheduled to address. While much of the attention has been on the measures intended to address the subprime mortgage crisis at the root of Wall Street's instability, there are some income and business tax issues also in the new law.    To find out more, please read Congress Passes Tax Extenders as Part of Bailout Bill.

Businesses Miss Out on Telephone Excise Tax Refunds; Still Time to File Amended Returns
More than five million tax filers have not yet claimed a federal telephone excise tax refund on their 2006 returns. The statute of limitations for claiming a telephone excise tax refund remains open for businesses and individuals.    For more information, please read Businesses Miss Out on Telephone Excise Tax Refunds; Still Time to File Amended Returns.

Tax Rate Projections for 2009
Even though you haven't yet paid your income taxes for 2008, we have a good idea of what many rates will be for 2009, if no changes are made to the tax code. Many tax figures are based on inflation adjustments. Here's a look into the future.    For further details, please read Tax Rate Projections for 2009.