Transcripts

"Kevin McCormally's Tax Tips"-Deadline Day

SUSIE GHARIB: The Federal income tax filing deadline is just hours away. That is, unless you live in areas of the northeast directly affected by the big storm on Sunday and Monday. Those taxpayers now have until midnight Thursday to file and should mark their paper returns with the words, quote April 16 storm. With 2006's return out of the way, tonight's tax tips focuses on this year's taxes and what you can do now to reduce your 2007 tax burden. Here's Kevin McCormally, editorial director of "Kiplinger's Personal Finance."

KEVIN MCCORMALLY, EDITORIAL DIR., "KIPLINGER'S PERSONAL FINANCE": With the 2006 tax deadline just hours away, it's time to start working on 2007. I want to quickly tick off a few of the many opportunities you may have in the months ahead to cut our own taxes. Take full advantage of your retirement plan at work and fund an IRA if you can. If you're 70 1/2 or older, remember that this is the last year you can take your required minimum distribution from your IRA tax-free, if you give it directly to charity.

If you buy a home in 2007, there's a brand new one-time-only chance to deduct the cost of private mortgage insurance. If you plan a significant contribution to a charity, be sure you understand how giving appreciated securities instead of cash can be a win/win situation for both you and the charity. If you're a landlord looking to upgrade, consider whether a tax- free swap makes more sense than a taxable sale and a subsequent purchase. You know that Congress has crammed the tax law full of opportunities to save you money. It's up to you take advantage of them.

And one last point: if, like most taxpayers, you got a fat refund this spring, March into your company's payroll office tomorrow morning and fill out a new W-4 form. Reducing the amount that's withheld from your paycheck will let you get next year's refund in installments, starting next pay day. I'm Kevin McCormally.