The Internal Revenue Service is offering some tax tips that could result in a bigger refund or less taxes due next year and a few new tax law items, according to a press release.
Here are the tips:
                                     
Consider Charitable Contributions
Make charitable contributions no later than Dec. 31. Make sure it is a legitimate tax deduction by giving to a qualified public charity and keep a paper trail. Donations charged to a credit card by Dec. 31 are deductible for 2008 even though the bill is paid in 2009. Also, checks count for 2008 as long as they are mailed this year. Taxpayers must itemize deductions in order to benefit.
Clothing and household items donated to charity must be in good used condition or better. Household items include furniture, furnishings, electronics, appliances, and linens. 
Cash donations require, regardless of the amount, a bank record or a written statement from the charity showing the name of the charity, the date and the amount of the contribution.  See Publication 526, Charitable Contributions for more information or log onto IRS.gov.  
 
Contribute to Retirement Accounts
This year, you can contribute up to $5,000 to an Individual Retirement Account (IRA) and if you’re 50 or older that amount goes up to $6,000.  The Retirement Savings Contribution Credit or “Saver’s Credit” of up to $2,000 is also available for taxpayers who contribute to a plan and whose income is generally less than $53,000.   Contributions to qualified pension funds generally must be done on or before Dec. 31st.  Contributions to an IRA can be made through April 15th of the following year.  Publication 560, Retirement Plans for Small Business; Publication 575, Pensions and Annuity Income and Publication 590, Individual Retirement Arrangements can answer most questions.
 
Keep Classroom Supply Receipts
The educator expense deduction allows teachers and other educators to deduct the cost of books, supplies, equipment and software that they buy for use in their classrooms. Eligible educators include those who work at least 900 hours during a school year as a teacher, instructor, counselor, principal or aide in a public or private elementary or secondary school.  The educator expense deduction is worth up to $250 and available whether or not you can itemize your deductions on Schedule A.
 
Sell the Losers
Consider an adjustment to your stock portfolio. Capital gains can be netted against capital losses, dollar for dollar. Any remaining capital losses can be then be used to reduce ordinary income up to $3,000. After that, any remaining capital losses must be carried forward into the next tax year or subsequent tax years as needed.
 
New: Additional Real Estate Tax Deduction
For those who pay real estate taxes but do not itemize their tax deductions, there is an additional deduction of up to $500 or up to $1,000 for joint filers for real estate taxes paid.  This deduction is available for the 2008 and 2009 tax years.  This property tax deduction is in addition to the standard deduction. 
 
New: First-Time Homebuyers Tax Credit
First-time homebuyers should consider taking advantage of a new tax credit available for a limited time.  The credit applies to primary home purchases between April 9, 2008 and June 30, 2009.  This tax credit must be paid back in equal payments over 15 years.  The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 for either a single taxpayer or a married couple filing jointly.  First-time homebuyers are those who have not owned a home in the three years prior to a purchase.

New: Recovery Rebate Credit
If you did file for or did not qualify for or did not receive the maximum amount for the Economic Stimulus Payment you may be entitled to a Recovery Rebate Credit when you file your 2008 tax return.  The key here is to complete the Recovery Rebate Credit worksheet.  More information is available at IRS.gov.
 
Tuition and Fees Deduction
Without having to itemize deductions, you may be able to deduct qualified tuition and required enrollment fees up to $4,000 that you pay for yourself, your spouse or a dependent. Remember, you can’t take both the tuition and fees deduction and education credits (Hope & Lifetime Learning Credits) for the same student in the same year.  See Publication 970, Tax Benefits for Education, for more information.
 
Recordkeeping
Are your tax records organized?  The IRS encourages taxpayers to take the time now to gather and organize their records.  If you forget or omit a record, you could pay more tax than is required.  See Publication 552, Recordkeeping for Individuals, for more details.
 
Beware of bogus e-mails
The IRS does not send e-mails about your taxes. Unsolicited e-mail that appears to be from the IRS, it may be a tax scam. Don’t click on the link, don’t open the attachment, send it to: phishing@irs.gov.