Five Ways to Save Money on Thanksgiving Travel Now

Since tomorrow is the beginning of October, taxpayers across the country are beginning to make travel arrangements for the upcoming holiday. Since so many members travel to see family for Thanksgiving, the expenses can quickly add up. Earlier today I came across this article from WalletPop.com with advice on how to save on your holiday travel arrangements. You can find a few of the tips below, or check out the full article here.

1. Book now. For the last few weeks, editors at SmarterTravel.com have monitored prices between 100 of the most popular cities for Thanksgiving travel and found that fares are slowly dropping as we approach the end of the month. The same trend occurred last fall, when airlines put Thanksgiving fares on sale in early October, Banas said. At Bing, fareologists said there are 50% more price drops during the holidays if you know how to look for them.

2. Set alerts. Sites that let you search flights on multiple airlines at the same time, like Expedia, Bing and Kayak, will track prices for you routes of your choice. When the prices fall, they will send an alert to your e-mail. These alerts will help you benchmark prices over several days.

3. Be flexible. If you plan to leave the Tuesday before Thanksgiving and return the Sunday after, you could pay as much as $170 more for your ticket, said Genevieve Shaw Brown, Travelocity's senior editor. Some experts suggest that traveling on Thanksgiving day is a good way to snag a cheap seat. Most travelers stay on average for five-and-a-half days, so extending your trip, or shortening it, could also lower your ticket price.

"Consider flying out early on Thanksgiving day itself, when flights can be exceptionally discounted and airports less crowded," said Darren Frei, editorial director at ShermansTravel.com. "But be aware that you always run the risk of delays or cancellations, which could mean missing out on the big feast."

Funny Gift for the Tax Pro in your Life!

The holiday season is almost over, but if you are looking for a funny gift to give your accountant or tax preparer then head on over to PrankPlace.com. For only $3.49 you can get a roll of IRS Form 1040 toilet paper. Here is the description:

Does it pain you to fill out a tax form each year? Does knowing that the IRS takes a large chunk of your salary give you the runs? This product isn't deductible, but it'll sure make you feel better. A collage of the 1040 IRS Form is printed throughout the whole roll!

Tax Related Holiday Presents

One of my favorite blogs, TaxProf Blog, has a holiday tradition of posting suggestions for gifts to give that “special tax person in your life.” This week’s suggestion is an exact reproduction of the original 1913 Form 1040. You can purchase it by clicking here, but here is the item’s description.

“Four pages long, including one page of instructions. Impressively framed in classic mahogany with beaded edge and segmented mat of ivory. Brass plate mounted on the mat states: "1913 Inaugural Form 1040." Framed dimensions are 30" by 24". Comes with Plexiglas and all accessories for hanging.”

Top 10 End of the Year Tax Tips

As the holidays approach and this long, but historical, year comes to a close, there is no better time to prepare early for next tax season. Our country’s economic outlook may seem dreary, but there are still plenty of ways to save money on your taxes. To help the readers of my blog better manage their bucks in both the present and the future, I have compiled the following list of the top 10 end of the year tax tips.

1. Charge It

Paying deductible expenses with a credit card before December 31st will allow you to claim the deduction this year. You can also wait until next year to pay off the charges. You also may qualify for credit card rewards.

2. DE-fer! DE-fer!

To keep your taxable income and liability down, try deferring some of your income until next year. This tip is easiest to for those of you who are self-employed, but many others can benefit from it as well.

3. Mortgage Payments

By making your next mortgage payment before the end of the year, you can take a higher interest deduction this year. However, remember that you will have one less mortgage payment to claim next year.

4. Get your Finances in Order

Conduct a thorough review of your income, expenses, deductions, and financial portfolio. You cannot reduce your income tax liability at all until you are crystal clear on just what your financial situation is. It can be helpful to get this done before the end of the year, that way you are not running around at the last minute looking for important financial documents.

5. Get Married, Already!

A lot of couples are planning on getting married in early 2009. However, if you decide to have the wedding in late 2008, you get to claim Married, Filing Jointly status on your 2008 return. This could lead to more favorable tax consequences (e.g. additional exemption, etc.)

6. Remember Retirement

Make “catch-up” 401(k) and IRA contributions if your contribution level is less than the maximum allowed (and if your plan will let you do it). This will not only benefit you in the long run with an ample retirement fund, but it will also lower your taxable income for this year.

7. The Season of Giving

Not only is it good for the heart to make charitable contributions, but it can also be good for your wallet! Make sure to collect all receipts for any charity contributions you have made this year, and if you have not made any yet then – well, ‘tis the season!

8. Prepay State and City Taxes

Remember, you can deduct all state and city taxes that you pay. So prepaying any state or local taxes you might owe before the end of the year means that you can deduct it from this year’s federal tax return.

9. Stock Up

If you own a business, or are self-employed, then now is the perfect time to stock up new supplies. You can deduct all of these expenses, plus at the time of the year many stores offer large holiday discounts. So by purchasing these items now you might be able to save a little money!

10. Check, Re-Check your Withholding

At the end of the year it’s a good idea to check, and double-check, your withholdings to assure that you are paying the exact amount you should be. It might not make an affect on your upcoming tax return, but it can get you on the right track for the next tax season.

Happy St. Patricks Day

Happy Holidays

Watching classic holiday movies will bring you joy and help you get into the spirit of the season. If you are interesting in watching a holiday classic then check out The Christmas Spot on FanPop, where you can stream over 100 holiday classics. Happy Holidays from every one here at Roni Deutch, A Professional Tax Corporation.