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Tax Tip of the Week
For the week of
March 31, 2003

Look for last minute tax savers

Time is short, but it's not too late to trim your 2002 tax bill. Here are some last minute moves to consider and deductions you don't want to overlook.

  • Maximize your 2002 IRA contribution. You have until April 15 to make deductible 2002 contributions. Don't forget that the maximum contribution increased to $3,000 for 2002 ($3,500 if you were 50 or older last year).

  • If you changed jobs in 2002, make sure you didn't have excess social security taxes withheld. Claim credit for the excess on your Form 1040 if you paid over $5,263.80.

  • Look into itemizing deductions if you usually take the standard deduction. Search for allowable deductions that you might have overlooked.

  • Medical deductions are allowable to the extent they exceed 7.5% of adjusted gross income (AGI). Don't forget items such as eyeglasses and hearing aids. You can deduct mileage and parking for medical appointments at 13 cents a mile.

  • Deduct miles driven for charitable work at 14 cents a mile unless you're reimbursed for your expenses. Parking and tolls are also deductible.

  • Don't overlook tax preparation fees, safe deposit costs, and certain investment advice. They all qualify as miscellaneous deductions, subject to a 2% of AGI limit.

  • Student loan interest is deductible whether you itemize or not. The previous 60 month limit on deductions has been eliminated.

  • Qualified tuition and school expenses up to $3,000 are a new deduction for 2002. Qualifying amounts for you, your spouse, and dependents may be deductible.

  • If you're a teacher or teacher's aide, you can deduct up to $250 for classroom supplies that you purchased with your own money.

  • If you purchased a hybrid gas-electric car in 2002, you may be able to deduct up to $2,000 of the purchase price.


Please come back next week for a new tax tip. And tell your friends about this tips page. We are a growing firm, and we appreciate your referrals.


Prior Tax TipsClick here to view previous tax tips.

"Tax Tips" are published weekly to provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders, and current tax information.

The information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.

If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax-cutting information from time to time, please contact our office. We're here to help.

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