Accelerating deductions is one method of trimming taxable income - and your tax bill - for the current year. Some examples:
- You can make your last state estimated tax payment in December rather than on the following January 15.
- If your medical expenses are close to or exceed 7.5 percent of your adjust gross income, but usually are below the 7.5 percent threshold, try to schedule for this year expenses that normally would be paid next year - for example, glasses, prescription drugs, or a physical scheduled for January.
- If you are allowed to pay your real estate tax in two installments - for example, December and June - consider paying the full year's tax in December.
Caution: Because some of the expenses you can normally deduct are not deductible if you are subject to the alternative minimum tax, accelerating those expenses may not result in tax savings.
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