Wednesday, February 04, 2009

Tax Provisions to Cut Your Tax Bill

Despite the current economic turmoil, provisions in the existing tax law can help you save on your 2008 return. For example, taxpayers who have investment losses or have lost their homes due to foreclosure can receive special tax breaks. Listed below are more ways to reduce your 2008 tax liability:

Investors
Investments sold at a loss in 2008 can be used to offset any profits on your tax bill.

Taxpayers can deduct from their income up to $3,000 of losses they did not use to offset their capital gains.

Home Owners
Taxpayers who lost their homes due to foreclosure or had their mortgage restructured, get a pass on paying taxes on the amount of debt the lender discharged.

Job Searchers
Moving expenses are tax deductible for taxpayers who moved to take a new job.

Some job search expenses, such as the cost of printing a resume or hiring a consultant to help with the job search, are deductible.

As these are general tax tips, it's strongly encouraged that you seek tax council if you have specific questions regarding your tax return. Read more strategies that can help you reduce your tax bill.

Visit www.FeedthePig.org for more money-saving t

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