The Coming of the New Year

Most of us are ready for 2009 to be over. We have had a wild ride with all that has happened in the US Economy. To get ready for 2010, there are a few things to consider to help you make the most of your money.

1. Adjust Your Witholdings: Do you look forward to that tax refund check every year in April? How much is it? Several thousand dollars? Well, while it might be nice to get "so much money back", you have in effect given Uncle Sam a NO INTEREST LOAN! If you adjust your witholdings and complete a new W-4 form with your employer, you can give yourself a pay raise simply by reducing the amount you are letting Uncle Sam "hold" for you. So get out your 2008 tax return and follow the instructions in this calculator.
2. Pay Yourself First: Make sure you are contributing what you can to your 401k or IRAs. The 401k is best because it uses "pre-tax" dollars so you save money for your future AND you lower your taxes. More info here.
3. Review Your Budget: Like everyone else, you are probably "recovering" from all your Christmas spending. There's nothing wrong with spending some money to show those you love how much you care but make sure you get back to your financial plan for 2010. Review your budget carefully and be sure you are spending your money in the best way for your unique situation!
   
4. Get Organized: Did you buy a car in 2009? You can deduct the sales and excise taxes from your 2009 taxable income, even if you don’t usually itemize deductions (including cars, light trucks, motor homes and motorcycle). How about property taxes on vehicles or your home? Did you have any charitable contributions? What about interest on your house payment? I file all records like this as I receive them in one folder so at tax time, I have everything I need to enter my deductions.
5. Do Some Research: Drop off Facebook for an hour or so and Google "Tax Deductions 2009". There are lots of good ideas for you there; Here are some from Kiplinger.

Remember, no one is watching out for you but you so do your homework and let 2010 bring you all the financial success that you deserve!