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From now until New Year’s is probably when you have the least amount of time to spare on mundane financial bookkeeping tasks. But if you can dedicate a few minutes to review your benefits and tax paperwork, you might be able to shave hundreds – or even thousands – of dollars off your 2012 taxes.
Here are a few suggestions:
If you haven’t already maxed out on contributions, ask your employer if you can make a catch-up contribution to your 401(k), 403(b) or 457 plan before year’s end. Most people can contribute up to $17,000 in 2012 (a $500 increase over 2011), plus an additional $5,500 if they’re over 50.
If you contribute on a pretax basis, your taxable income is reduced, which in turn lowers your taxes. At a minimum, if your employer offers matching contributions (essentially, free money), be sure to contribute at least enough to take full advantage of the match.
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