6. Give to charity
Your favorite nonprofit organization will happily take your money or unwanted household items any time of the year.
In fact, summer is when many charities are struggling, as most folks tend to spend this season thinking about their own recreational wants instead of other people's needs.
So help out the charities of your choice by donating now instead of waiting until the end of the year. If you itemize, your deduction is just as valid in July as it is in December.
Just be sure to get a receipt and put it in your newly created tax-filing system. The IRS now demands documentation for every monetary charitable gift, regardless of how small or large. Without it, the IRS could disallow your deduction.
7. Contribute to your retirement plan
Earlier is better when it comes to your retirement plans. The sooner you contribute to your individual retirement account, either a traditional IRA or a Roth, the sooner the account starts earning money.
Don't forget your at-work account. If your employer offers a 401(k) and you haven't taken advantage, check on enrollment details. If you are already contributing, increase the amount of your contributions. This money comes out of your paycheck before taxes are calculated, meaning you'll get a small but immediate tax break on your earnings.
And if you decide you'd like to move from a tax-deferred traditional IRA to a Roth account with its tax-free distributions, go ahead. There's no longer any income limit on such conversions.
8. Buy a house
Yes, buying a home is a major life decision. Yes, banks are pickier about just who gets a mortgage nowadays.
But if you qualify, interest rates are at near-historic lows and there are lots of real estate bargains out there.
Homeownership offers many tax advantages. And although there's talk in Washington, D.C., about possibly cutting some of the tax perks of homeownership, that's not likely to happen soon. Even if homeowner tax breaks are eventually changed, they likely will be phased in over many years.
So if you're ready for a place of your own and have your financing in order, look for the perfect house and buy it this year so you can start enjoying it and its tax benefits.
9. Make home energy improvements
If you're already in a house, make it more energy efficient. It could help reduce not only your utility bills, but also what you owe the IRS.
Home energy efficiency tax credits have been around for years. For 2010 taxes, the tax benefit was greatly enhanced. Taxpayers who made eligible energy upgrades could claim a credit of up to $1,500. If you got an extension to file your 2010 return and made qualified home energy improvements last year, be sure to claim them when you finally file.
The tax break is still around for the 2011 tax year, but it's not as generous. The maximum credit claim now is only $500. And if you previously claimed a home energy credit between 2005 and 2010 of that amount, you're not eligible for the credit on next year's tax return.
If, however, you make more ambitious home energy improvements, such as installing solar energy, wind power or geothermal systems, you qualify for an even better tax break. These upgrades could qualify for a tax credit equal to 30 percent of the cost, including installation, without any cap on the credit amount.
10. Hire a tax professional
Whether you need a tax expert's assistance to finally file your extended 2010 return or you're looking for help in getting your 2011 tax act together, now is the time to hire someone.
The filing season crunch is over, meaning that all types of tax professionals have a bit more time. They are much more likely to take on new clients now than early next year.
It also gives you time to determine exactly which type of tax preparer fits your tax needs. And you'll be able to thoroughly check out the tax professional before you turn over your tax life to him or her.
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