Act Now on Tax Credits, Deductions, Flexible Spending Plans; Save Money Next Year on Your Taxes
Dec. 21, 2009— -- You're in the middle of the holidays, and the New Year is just around the corner. With it, thoughts may turn to your taxes.
Mellody Hobson, the "GMA" personal finance adviser, is offering you five tips -- things that you can do right now to save big come tax time:
Remember Documents, Health Care Spending Accounts
Here are some additional tips that you might not have heard on the air:
Under the homebuyer's tax credit extension, you need to:
Additionally, to be eligible for the first-time homebuyer credit, you cannot have owned a home for the three consecutive years prior to your purchase. For the repeat homebuyer credit, you need to be an existing homeowner who has lived in your current home for five consecutive years out of the last eight and be purchasing another home as your primary residence. Finally, if you plan to claim the new homebuyer's credit on your 2009 or 2010 tax return (as applicable), you will need to complete Form 5405.
Pay Mortgage Early, Apply Investment Losses
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