If your itemized deductions are close to
the amount of your standard deduction, they may not save you much, if any, on
your taxes. One strategy is to “bunch”
as many of the deductions as you can into one year in order to reduce that
year’s taxes, and then settle for the standard deduction the following year.
Here are the itemized deductions that
you may have enough control over to “time” them into one year rather than in
and dental expenses. Work with your
providers to pay your medical expenses before December to deduct in 2013, or in
January to deduct in 2014.
interest can be moved by paying January’s mortgage payment in December. This way you will effectively get 13 months
of interest in one year and 11 the next year.
income taxes. Make your January 2014
payment in December 2013 so you can deduct it this year.
taxes in El Paso
are due at the end of January 2014.
Prepay them in December of 2013 so you can deduct them.
gifts. I have one client who makes
annual donations to his church and his favorite charities. He made one in January of 2013 and will do
next year’s late in December of 2013.
tax on large purchases such as new vehicles.
Make your purchase in the year you are bunching your itemized