Ways to reduce your tax bill in 2014

There are several things you can do in the next week that will reduce your tax bill in 2014.

And you don't want to wait until News Year's Eve to start planning.

Thinking of fixing a drafty door, or putting more insulation in your attic? You may want to do it, because the government energy tax credits are due to expire on Dec. 31. (They may be reinstated in January, but Congress left for its Christmas 2013 break without renewing them).

As result, our partners at the consumer guide Angie's List says a lot of savvy shoppers are putting insulation on their Santa wish list this year. 

"We're hearing of consumers taking advantage of the credits by installing new windows, installing new doors, insulation, even heating and cooling."

Angie Hicks says you can get up to $500 for purchasing insulation, certain high efficiency water heaters, windows, doors or a central air conditioner or heat pump.

What Everyone Can Do

Angie's List has several other suggestions for reducing your tax bill in April:

-Donate to charity before Dec. 31

-Contribute to your IRA or 529 college fund by Dec. 31

CPA's expect to be very busy with all the coming changes, so the earlier you can book a professional, the better.

CPA Jennifer Harris said, "Folks should set up an appointment as soon as anything changes in their financial situation from the year before. It's never too late to educate yourself on what your situation is for that year. So, anytime during the year is the best time to schedule an appointment."

Christmas week is a great time to make some cash or clothing donations to reduce next spring's tax bill. And if you're thinking of hiring a pro, it's better to look now that to wait until February.

As always, don't waste your money.

____________________________________

Don't Waste Your Money is a registered trademark of the EW Scripps Co.

"Like" John Matarese on Facebook

Follow John on Twitter (@DWYM)

Print this article Back to Top

Comments

or Subscribe now so you can share your opinion! It’s only a penny for a month trial.

Latest Forecast
More DWYM
U.S. Army hats still being made in China
U.S. Army hats still being made in China

John Matarese says despite outrage, some military clothing still comes from China

Many appliances obsolete in just 5 years
Many appliances obsolete in just 5 years

John Matarese looks into why you can't fix a 6 year old oven

Best deals, discounts for a Cincy 'Staycation'
Best deals, discounts for a Cincy 'Staycation'

John Matarese shows how to get discount tickets for local vacation attractions.

Why don't ice cream sandwiches melt anymore?
Why don't ice cream sandwiches melt anymore?

John Matarese looks into one mom's question about her kids' ice cream.

Get the best deal, and avoid duds, at yard sales
Get the best deal, and avoid duds, at yard sales

John Matarese has tips for finding hidden treasure at yard and garage sales

Mom lured by Craigslist car scam
Mom lured by Craigslist car scam

John Matarese has a warning for anyone shopping for a used car

You Win Wednesday freebies
You Win Wednesday freebies

John Matarese shares the latest freebies. Click here for App of the Week

Simple, free way to stop unwanted catalogs
Simple, free way to stop unwanted catalogs

John Matarese shows how to stop unwanted catalogs from showing up in your mailbox

Cincinnati Bell Wireless customers want answers
Cincinnati Bell Wireless customers want answers

John Matarese looks into questions surrounding the sale to Verizon.

Why you may be killing your washer & dryer
Why you may be killing your washer & dryer

John Matarese shows the mistakes many of us make