2014 Tax Tips: 3 Ways to Boost Your Deductions

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With the end of the year approaching, now's the time to make smart moves to cut your tax bill next April. One key to paying less tax is making sure you get all the deductions you're entitled to. But to make the most of your deductions, it pays to know some hidden tips.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, runs through three ways you can boost your deductions and pay less tax. Dan notes that the most popular deduction comes from contributing to an IRA, which gives you until April 15 to get a write-off on your 2013 tax return. In addition, Dan suggests other items such as making deductible donations to charity and prepaying other deductible items like taxes. Be sure to watch for tips that explain how Visa and MasterCard can help make your tax planning easier, and listen as Dan goes through some traps concerning the alternative minimum tax that you need to know.

The best reason to be smart with tax planning
IRAs give you a tax break now, but they're also instrumental for your retirement. Yet while investors tend to be impatient with the market, your best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.

The article 2014 Tax Tips: 3 Ways to Boost Your Deductions originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends and owns shares of MasterCard and Visa. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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