Tax Time Ticking Closer

Four days left to make your resolutions — and to reduce your tax bill.

“The type of tax issues that someone is looking at to take care of before Dec. 31 are so dependent on what someone’s financial situation is,” CPA Michael McGinnis said.

By taking a look at your 2011 financial situation, you might reduce your bill by deferring income, making an extra mortgage payment, or giving to charity.

“Year-end planning pertains to what is my income for the year, what is the tax that is going to hit me personally from this business going to my personal tax return. What do I need to do to minimize this taxable income coming from this business to my personal tax return?” McGinnis said.

A common reaction when I mentioned the word “taxes” to people was one of discomfort and stress.

“I think money is a stressful subject, including taxes. I don’t know what our government is going to do about it, it’s a little scary at the moment, especially for seniors,” taxpayer Sandra Roeslel said.

Like it or not, a focus on taxes is necessary.

“Tax planning can be very important because of all the provisions that are out there for you and you want to take a look at them, take advantage of them, of course if you can, to lower your bill and increase your refund or just make it easier on yourself,” McGinnis said.

These next few days are very important for tax planning, but tax planning isn’t important for everyone.

“Small businesses and self employed taxpayers definitely have more of an option to plan because you get folks there that are self reporting,” IRS spokesperson Raphael Tulino said.

In your effort to save — be smart.

“If you’re getting an email out of the blue, initial contact from the IRS, about a refund or a survey or a probe, chances are it’s a scam. The IRS is not reaching out to you via your email,” Tulino said.

Four days left to try to start 2012 with a few more dollars.