Tax Tips for 2006 for US Taxpayers

By Mike Godfrey

Tax-News.com, Washington

23 November 2006

The US National Association of Tax Professionals (NATP) has suggested eleven ways in which taxpayers can bring down their tax bills for 2006, especially if they are itemizing. But they must act quickly, as January 1 begins a new year and in most cases, the opportunities will be gone.

Here are the eleven ways to save by acting before December 31, 2006:

• Make an extra mortgage payment before the year is up. The interest you pay is added to your other mortgage interest.
• Give unused items to charity and deduct up to the fair market value. Receipts are needed for all items. Contributions of household items made after August 17, 2006, are not deductible unless they are in good or better condition. If the value of a single item is over $500 you must have a qualified appraisal.
• Have you traveled in connection with charity work? Mileage is deductible at a rate of 14 cents per mile. (You must have kept records of charitable purpose, dates, places, and miles). The value of your services is not deductible.
• Use your full pre-tax medical reimbursement funds that were deducted from your salary. If you don’t use them, yo