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LAST-MINUTE TAX SAVINGS Plan Now for 2012 Taxes The best way to pare your personal and business income taxes to the legal minimum is to avoid the last-minute rush to beat the filing deadline. Here are a few tips that will help you minimize taxes for 2012. Organize Your Records If you scramble every March and April looking for receipts and other records to pass along to your accountant, you're probably missing out on some healthy deductions. Start out right by organizing your records as they accumulate. Set up manila folders for expense and income records and file them as they occur. Maximize Your Tax-Deferred Retirement Account Early Don't wait until filing time to fund your retirement account. Making the maximum allowable deposits into your retirement account as early in the year as possible not only reduces your tax load, it also adds months to the tax- deferred compounding of your investment. Home Equity Interest If you have a high-interest car loan or a large credit card balance, you may want to consider taking out a Home Equity Loan at a lower interest rate to pay them off. You can generally deduct interest you pay on the first $100,000 of a home equity loan. However, there are some limitations, so you should consult with your tax advisor on your eligibility. Balance Investment Gains and Losses Keep a close eye on your investment performance during the year. By selling appreciated assets and liquidating under-performing investments, you may match gains and losses to minimize your personal income taxes. The amount of capital losses you can use to offset ordinary income is limited to $3,000. If your net loss totals more than $3,000, don't worry. You can carry forward the losses over $3,000 every year until you use them up. 2012 Tax Brackets, according to Taxbrackets.org Married filing Tax rate 10% 15% 25% Single filers Up to $8,700 $8,701–$35,550 $35,351–$85,650 28% $85,651–$178,650 33% $178,651–$388,350 35% $388,351 or more jointly or qualifying widow/widower Up to $17,400 $17,401–$70,700 $70,701–$142,700 $142,701–$217,450 $217,451–$388,350 $388,351 or more The IRS toll-free help line— 800-829-1040—is available from 7:00 a.m. to 10:00 p.m. ET weekdays. The website (www.irs.gov) has interactive tax aids, forms, and publications for downloading. Married filing separately Up to $8,700 $8,701–$35,350 $35,351–$71,350 $71,351–$108,725 $108,726–$194,175 $194,175 or more Head of household Up to $12,400 $12,401–$47,350 $47,351–$122,300 $122,301–$198,050 $198,051–$388,350 $388,351 or more 76 massage & bodywork march/april 2012