5 Tax Changes You Can Make in 2007

If you have gotten the bulletin about the proposed tax changes for 2007 and they aren't ringing any bells, perhaps it's time to start reviewing your tax matters. Many people do not realize that by controlling their spending, planning retirement of debt, and increasing savings and IRA tax-deferred investments and other strategies, they can actually reduce the amount of tax they pay while enjoying other benefits from the money spent.

There are many strategies you can utilize to reduce your tax debt and increase the flexibility of benefits through monies paid to charitable deductions, retirement plans, and analysis of savings options. And by planning your spending and saving at the beginning of 2007, you have enough time to change your spending and saving in time to reflect these changes on your 2007 tax bill.

Here's an example that incorporates the many suggestions incorporated in this article.

Phyllis added up her tax refund again, and slumped in despair. Even after cutting back on expenses during the end of the year, she was just breaking even taking the standard deduction. A lot of that was due to online dating she'd started during the summer, with increased cost of membership, new clothes and other expenses.

Phyllis had hoped to do some volunteer work this year, but couldn't make any of the meetings or time commitments due to her busy social and work schedule. She'd also have to pay for some extended education classes to keep her broker's license up. Listlessly she got dressed for work, eyeing the many new shopping bags and new clothes unworn in the closet.

As she flipped through her mail, she discarded the many charitable and church mailers asking for donations. She'd run short at the end of the year, and her bonus would barely cover her taxes and credit debt minimums. She winced as she remembered all the promises she'd made earlier in the year to do more, give back to the community.