I itemize my deductions. What are some general things I can do to reduce my taxes?

Here are a few simple suggestions that can help you cut your taxes:

  1. How about cleaning your closets? It might sound crazy, but there are plenty of charities that would love the clothes that no longer fit you, the toys and equipment that are no longer used, and the books that are no longer read. Contribute these items before yearend to receive a market value (thrift shop value) deduction. And don't forget to get and keep the receipt from the charity.
  2. Pay any state taxes that you think you might owe before December 31. Be careful, this will not work if you pay alternative minimum tax (AMT). Find out more about AMT.
  3. Always try to maximize the amount of IRA or any other retirement products you have. You receive a tax deduction (or tax incentives for a Roth IRA) for merely paying yourself.