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How to avoid getting taxed to the max

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    Smart moves to make before the new year

  • Duration 2:39
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Makers are still trying to be.

Compromise on the so called -- well.

And a lot of us don't know what on -- is gonna happen to our taxes next year.

There are five things though that you can do with your money right now to make sure you aren't taxed to the Max.

Sandra Smith on the Fox Business Network explains OK so regardless of the -- people's -- there's one thing in particular.

You say we should do before the end of the year.

Well that's contribute your retirement accounts especially when it comes to the for a -- here remember the Max for 2012 a 171000 dollars while that sounds like a lot.

Might not be when you look at -- the taxes we might face in the new year so.

Even if you haven't maxed that out yet or you can even get that level -- as much -- you can't that retirement account by the end of the year member that is tax free savings.

That's not tax debt at that.

That could just be tax a lot more next year exactly if all this comes to fresh OK I've -- has about charitable giving this side could actually adopt adoption could go away next year -- -- remember charitable donations of appreciable assets fully deductible so this is one -- best bang for your buck.

Hi this is something you can do before December 31 this year -- cash donations 50% deductible.

All this might be going away in the new year not necessarily be appreciable donations that could be affected by in -- in the new year.

But certainly something to think about if you do some have something on -- -- the Alternative Minimum Tax I was gets really complicated but you yeah a fire don't don't sweat it this is the AMT tax.

Lot of folks are worried about it because they haven't had to pay it before.

But they're saying 34 million more American households would be subjected to this -- tax.

If we see if we -- the fiscal cliff they're saying don't panic about it -- is probably not gonna happen that many more -- defected.

They're likely to come to some sort of agreement by the end of the year so that's one of a lot of folks are -- don't.

I'll -- -- some good news out why should we pay for our next to semesters tuition before the end of the -- while you're still eligible for the tax credit even if you -- this brings up semester tuition.

This year you're still eligible for the tax credit in this is something -- that could come off the table in the New -- so even -- you're paying 2013.

Springs the master.

You can get by the end of the year and still be eligible for the tax and it's not just for college that's for college -- heck -- tell us about the 529 education savings account and we do this here of course this is tax free savings and when you did ducked out of that account to pay for tuition.

That's a big benefit so for a long K 529.

Plans he's -- tax free shelters for your dollar something to take advantage.

Before December 30 are hard to do that times are tough -- it and hang on that every penny Sandra Smith on the Fox Business Network could not good advice and relax.

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