June 9, 2009

Already Thinking About Next Years Taxes

Since short selling our condo, my wife and I have taken a few steps to help reduce our tax bill for next year, since we won't have the large mortgage interest write off.

  • When my wife started her new job a couple of months ago, she only claimed 1 dependent to have more taxes withheld (she usually claims 2).
  • We just increased my 401(k) contribution from 5% to 8% to reduce our AGI. This will go into effect beginning my July 1st paycheck.
  • When my wife's company has their 401(k) open enrollment, she will increase her contribution from 5% to 8% to reduce our AGI.

We'll still have some mortgage interest we can write off since we just sold the condo, but hopefully these extra steps will help minimize what we owe next April 15th.


MoneyFunk said...

So, increasing you 401(k) contribution will hopefully prove a win-win situation. ;)

1MansMoney said...

You got it MoneyFunk!