The Season of Giving?

Just like the holidays, it's never too early to begin planning for the 2014 income tax filing season. The following are several tax savings strategies aimed at helping taxpayers minimize their income tax bills. As always, please remember to speak with a qualified tax professional about your specific tax situation.

Defer your income

The basic idea is to shift income out of this year and into next year, thereby allowing you to postpone paying tax on the income for the time being. Here are several common examples of the application of this strategy:

• Ask your boss to hold off on paying your bonus until January 2015.

• Put more money into your tax-deferred 401(k) retirement plan before year end.

• Make tax-deductible contributions to your IRA for the 2014 tax year by April 15, 2015.

• Hold off on selling certain "appreciated" assets that will generate a capital gain until after the new year.

• If you're self-employed, delay sending customer invoices for year-end projects until after the new year.

Accelerate tax deductible home expenses

Owning your home provides two key tax deductions which you can use by year-end to reduce your current year's tax bill. Make your January mortgage payment by Dec. 31 and deduct the mortgage interest on the extra payment on your 2014 tax return. The same is true for early property tax payments. Be sure to consider the impact, if any, of the Alternative Minimum Tax (AMT) on the accelerated property tax payment strategy as property taxes are not deductible under the AMT rules.

Use a "bunching" strategy for certain types of deductible expenses

Medical and dental expenses, to the extent they exceed 10 percent of your adjusted gross income (AGI) and miscellaneous expenses, to the extent they exceed two percent of AGI are deductible. The most common miscellaneous expenses are unreimbursed employee business expenses and investment management fees. To get over this deduction "hurdle," consider combining eligible expenses. This strategy, known as bunching deductions, will push them into one tax year where you can make maximum tax use of them.

Accelerate other deductible expenses into 2014

Unlike medical, dental and miscellaneous expenses, charitable donations are fully deductible without any AGI limitations. Consider making large charitable donations (either cash or non-cash) before year end to obtain the benefit of the deduction on this year's return. Make sure that you maintain copies of all receipts for your charitable donations in the event of a tax audit. A donor advised fund is an excellent tool for coordinating your charitable giving program.