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3 things to do by midnight tonight

Dec 31, 2010 | | Comments Comments Off

You have just a few hours left to make these money-smart moves:

Spend what’s left in your flexible spending account. FSAs are workplace plans that allow you to save pretax money to cover medical expenses not paid for by your insurance, and many require that you incur eligible expenses by midnight Dec. 31. Furthermore, starting Jan. 1, you will no longer be able to use your FSA money for over-the-counter drugs without a doctor’s note. So today’s the day to stock up on aspirin, decongestants, first aid kits and other soon-to-be-ineligible expenses (for Aetna’s list per the IRS, click HERE).

Make those last charitable contributions. If you itemize your deductions, you can get a tax break for giving to legitimate charities by midnight. You can charge the donation today with a credit card; as always, just make sure you can pay the bill in full when it arrives. Check out the charity at Charity Navigator or similar sites. Bankrate has this article on getting the most of your charitable deductions.

Boost your retirement contribution. If you pay Social Security taxes, you’ll be getting a one-year, 2% tax cut starting Jan. 1. Consider using that break to boost your 401(k) or 403(b) contibutions. If you’re at work today, you can arrange that with your human resources department. Otherwise, make a note on your calendar to do so as soon as you return to work.

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Categories : Liz's Blog, Taxes, The Basics