(KCPW News) The Internal Revenue Service is reminding taxpayers about end-of-year deadlines. Spokesman Clay Sanford notes that contributions must be made to 401(k) accounts, charitable organizations, and college savings accounts by December 31st. He adds that struggling businesses may want to consider deferring some income until next year, which also has an end of year deadline.
"401(k) plans are the big thing, December 31st is the deadline for contributions to a 401(k) retirement type plan, and then IRA contributions you have until April 15th," he said. "For small businesses they may have some discretion when they receive income and properly deferring it until next year can lower taxable income."
Sanford also cautions those contributing to tax exempt organizations to make sure they are legitimate. He says every tax-exempt group is searchable on the IRS web site.
Another issue is economic stimulus payments for those who recently filed their 2007 tax returns. Sanford says those who haven't received their check by December 31st will need to file for a recovery rebate credit.
"The deadline for getting the rebate this year was generally about the end of November was when we needed all of the requests for that in, so that we could send the checks out by the end of the year," said Sanford. "That doesn't mean that if you missed it that you can't get it and that is what this recovery rebate credit is. It just won't be coming as a separate check like it did for most people during this year."
In general, Sanford says the most overlooked tax credit is the earned income tax credit. To find out if you qualify, or for more information on year end deductible contributions, visit the IRS web site.