While 2009 has been an economically tough year for many, you may be able to cut your 2009 tax burden, according to Harris Abrams, senior tax analyst from the Tax & Accounting business of Thomson Reuters. "There are a number of steps you can take in the next few months to reduce your taxes for this year," he says. "But these opportunities could be lost if you don’t act on them soon."
To maximize your tax savings, Abrams advises taxpayers to immediately see if any of the following maneuvers will work – some of these opportunities will not be available next year:
A provision in the recent Stimulus Act provides that qualified motor vehicle taxes are deductible as either an itemized deduction or as a component of the standard deduction. The Stimulus Act establishes a temporary itemized deduction equal to the amount of state and local sales and excise taxes paid on a qualified vehicle purchase between February 17, 2009 and December 31, 2009.