Time is money. That’s especially true when trying to make taxes less taxing as the calendar pages furiously flip away to Dec. 31. Try these tips now to make the most of your deductions – as well as take advantage of any tax credits available to you. But remember, the clock’s ticking and you only have until year-end to trim your tax bill.

Play 401(k) catch-up. A 401(k) plan has a maximum contribution amount that limits your annual contribution. However, if your contributions have fallen short so far this year, some plans allow you to catch up at year-end. Contributing now can help you save on taxable income and, if your employer matches a portion of your contributions, you may reap an extra benefit.

Donate to charity. If you are considering giving a cash donation to a charity during the 2008 tax year, give it or mail it by Dec. 31. You are eligible for the deduction as long as the donation is made by the end of the year. Appreciated stocks can also produce tax advantages when donated to charity. If owned more than 12 months, you will not owe taxes on the appreciation, but will still be able to deduct the full current market value of the stock. Gifts of stock and other securities are generally subject to tighter completion rules than the "in the mail" rule for cash gifts and should be completed (i.e., out of your account and into the charity's) before the end of the tax year.

Charge it. Any year-end deductible expenses, such as unreimbursed business-related expense, can be charged to a credit card. The IRS allows you to deduct expenses that occurred within the taxable year, which means that you can take advantage of the deduction this year and pay off the card next year. Many charities also accept donations by credit card, which furthers your ability to make a tax-deductible charitable donation.

Make your January house payment early. Write the check for your January mortgage payment in December and mail it early enough that your lender will post your payment by year-end. You’ll be credited for the mortgage interest paid yet this year.

Prepay. If the alternative minimum tax (AMT) does not apply to you, and you are sure that your tax bracket has remained the same, consider prepaying your state and local taxes. Prepaying these taxes before the end of the year enables you to claim a deduction for the amount paid when you file.

Invest in individual retirement accounts (IRAs). One exception to the “before Dec. 31” rule is the IRS deadline for investing in your IRA. You may contribute to your IRA for tax year 2008 until April 15, 2009. If you are self-employed, other employer-based plans, including SEPs, can garner you even
more time.

Be sure to consult your tax advisor to see whether these year-end strategies are right for your situation.

Please note that this financial institution does not give tax advice. Consult your tax advisor for more information.