Best Tax Tips

April 15 is still several months away, but it’s not too soon to give your 2009 tax situation some extra attention. Here are some pointers that could lighten your federal income-tax burden.

Buy a car. State and local sales or excise taxes paid on the purchase of a new vehicle are potentially tax deductible. Tax credits are available for purchases of new energy-efficient vehicles (e.g., hybrids), subject to make and model restrictions.

Insulate your home. This is just one of the improvements you can make that will qualify you for an energy-related tax credit.

Claim child and dependent care credit. The credit is available for eligible child care expenses as well as the expenses of caring for a disabled spouse or a qualifying adult dependent while you work or look for work.

Use capital losses. Check your investment portfolio and last year’s return to see if you have capital losses or capital loss carry-forwards you can use to lower this year’s taxes. Capital losses offset capital gains and up to $3,000 of ordinary income annually ($1,500 if married filing separately).

Donate. Helping out qualified charitable organizations can save you taxes if you itemize your deductions. Keep your canceled checks, credit card statements, or other bank records and receipts.

Contribute more toward retirement. Stepping up pretax salary deferrals to your employer’s 401(k), 403(b), or SIMPLE plan before year-end can boost your savings — and shave dollars off your tax bill.

Skip required minimum distributions (RMDs). Under a temporary provision, you do not have to take 2009 RMDs from your tax-deferred retirement accounts if you are over age 70½, presenting an opportunity to delay taxable withdrawals until next year.

Check AMT status. If a projection shows that you are likely to be subject to alternative minimum tax this year, certain income and expense timing strategies may improve your tax picture.