End of the Year Tax Tips

NEW YORK (AP) -- Before the calendar turns, here are some things you might consider doing to reduce the amount you owe on taxes next April:

1. Defer income. Holiday bonuses are scarce for most people this year, but if your company is still giving them, ask to receive it in January. If you're self-employed, delay sending invoices until late December, to push receiving payments into next year.

2. Donate cash or in-kind gifts like clothing and furniture to qualified charities and make sure you get receipts.

3. Consider selling investments that have lost value: the IRS allows capital losses up to $3,000 more than reported capital gains.

4. Prepay local real estate or other property taxes.

5. If your medical expenses are close to 7.5 percent of your adjusted gross income, consider prepaying expected expenses for next year or having elective procedures done before the year is over.

6. Prepay tuition for next semester if you qualify for Hope or Lifetime Learning tax credits, which are available for individuals earning less than $58,000 and married couples filing joint returns earning less than $116,000. The IRS Web site has more details about the credits.

7. Make gifts up to $12,000 for general purposes or unlimited gifts for educational purposes. Consider making that gift to a child's or grandchild's 529 college plan.

8. Extend subscriptions to professional journals, pay union or professional organization dues, enroll in and pay tuition for job-related courses.

9. Maximize contributions to IRAs and Roth IRAs.

10. Invest in alternative energy products for your home or buy an alternative-fuel vehicle that qualifies for a tax credit.