2006 is on its way out, but there are still ways for you to get some last-minute tax savings before the New Year. Take advantage of these tax-saving strategies from Kiplinger:
Increase your retirement savings and slash your tax bill. You can still contribute up to $15,000 to your 401(k) or other tax-deferred retirement plan. Workers age 50 and older can contribute up to $20,000. Your employer can adjust your December paycheck so you can get the savings. Lucky enough to receive a year-end bonus? Find out if you can place it in your retirement-savings account.
Most charitable giving from Americans occurs this time of year, so save your receipts! If you itemize your deductions, you'll get a tax break. Age 701/2 or older? Donate to a charity, and you get tax-free distributions of up to $100,000 a year from your IRA.
Save the environment and save some cash. You have until Dec. 31 to make qualified home improvements, such as installing new storm windows and doors, to snag an energy tax credit for 10 percent of the cost (but the credit can't exceed $500). Visit www.energystar.gov/taxcredits for details.
Did you buy a hybrid car this year? You may qualify for a tax credit from $250 to $2,600. Visit www.irs.gov and search for “hybrid car” for more information.
