Last-minute tax breaks still available before 2014 starts
ARLINGTON, Va. (WJLA) - As you prepare to say goodbye to 2013, there are a few last-minute things you can do to help your bottom line in 2014.
While tax day isn't until April 15, taxpayers can start planning now to take some last-minute deductions. It'll help you pay the IRS the least possible amount once the deadline comes.
The top deduction you can take before the end of the year is to donate to charity. In Arlington, a line wrapped around the corner of the Glebe Road Goodwill to get in their last-minute giving.
"The pile had been accumulating for a couple months, and it’s the end of the year," Alexandria resident Karly Davis, who donated Tuesday, said. "We just want to make sure we get it in for our taxes."
Another thing you can do to chop some dollars off your tax bill is to buy an electric car - that can lead to a $7,500 tax credit. Adding to your 401K leads to less take-home income that the IRS can touch as well.
The maximum you can contribute to your retirment account on an annual basis is $17,500, but if you're over 55, you can set aside an extra $5,500.
In addition, making your January mortgage payment by midnight will allow you to deduct interest on the coming tax year. The same goes for your property taxes.