photo credit: NickStarr

With the year coming to an end in a few short months, it’s time to start thinking about your taxes.

• If you haven’t done so already, make plans to use all money in flexible spending accounts (FSAs) – dependent care and/or healthcare. You have until April 30, 2009 to submit claims against your 2008 FSA.

• Consider donating clothing or other unwanted items before the end of the year if you typically itemize your deductions.

• Use the IRS withholding calculator (online at www.irs.gov/individuals/page/0,,id=14806,00.html) to verify that you’re having the correct amount of taxes withheld from your paychecks. While you don’t want to give the government an interest-free loan, you don’t want to pay a penalty for not having enough withheld either. You will need a copy of your most recent paycheck stub as well as records of student loan interest, mortgage interest and charitable giving.

• Fund an IRA if you have not done so already. You have until April 15, 2009 to fund a traditional or Roth IRA for the 2008 tax year. The IRA limit for 2008 is $5000.

• Start gathering your tax records so you don’t miss out on all the deductions and/or credits to which you may be entitled. Now is the time to collect all essential paperwork in a folder to give to your tax preparer next year.