year end tax tips to save some cash

I got an email from ING with some tips on saving on taxes. Some of the tips I already knew about, and some not so much.

Here are some highlights:

Maximize your savings. Put the maximum $15,500 into a 401(k) or similar retirement plan if you can. (Self-employed? You can put in more!)

Lose the deadweight. Make sure you review your mutual fund portfolio and sell off the lesser performers. With stocks, hold off on selling any shares until next year if you expect to be in one of the two lowest tax brackets next year (10 and 15%) - starting in 2008, taxpayers will pay no tax on the profits from the sale of assets they have owned longer than one year.

Install energy-efficient storm windows and doors by December 31st and you can claim a tax credit of 10% of the costs up to a maximum credit of $500. Also, putting in a high-efficiency electric heat pump and/or central air conditioner qualifies for a $300 tax credit (also subject to the $500 total).