One was a page on itemizing deductions. Like many people, whether or not to itemize deductions or take the standard deduction is a confusing choice. The short answer is that if you have large (several thousand dollars or more) expenses in the following categories, then you should consider it:

• Medical expenses more than 7.5% of your adjusted gross income
• Mortgage interest
• Charitable contributions
• State and local income taxes, general sales tax on retail purchases, as well as real estate and property taxes. Not all of these can be combined, though.
• Things like gambling losses, tools, and dues that exceed 2% of your adjusted gross income

They also had a page on what’s new with 2008 taxes, like inflation adjustments, and changes to the alternative minimum tax.

Normally, I throw away nearly all email from banks. At best, it’s notifying me of new terms of service, and at worst it’s an offer for yet another credit card. This time I had a pleasant surprise. (I would link to their article, but unfortunately it seems nearly impossible to link to the web pages: they aren’t available on their normal web site, and the links don’t seem to work unless clicked-through from the email newsletter they sent to me.)

But while we’re obsessing over deductions, it’s easy to forget all about tax credits. That’s a downright shame, too: dollar for dollar, we’re better off trying to get more tax credits than deductions. Income tax deductions reduce taxable income. A $500 deduction can bring your actual bill down by between $50 and $175, depending on your tax bracket. But a $500 tax credit will flat out reduce your tax bill by $500.

Furthermore, there’s an upper limit on the tax deductions you can claim. If you zero out your tax bill with tax deductions, don’t bother collecting any more receipts. But some tax credits are refundable: even if you don’t owe any taxes, you can get money back.

10 Common Tax Credits

1. Earned Income Tax Credit
2. Saver’s Tax Credit
3. Child Tax Credit
4. Adoption Tax Credit
5. Child and Dependent Care Tax Credit
6. Education Tax Credits
7. Social Security Tax Credit
8. Foreign Tax Credit
9. AMT Credit
10. First-Time Homebuyer Credit

There are plenty of less well-known tax credits available. You can pick up a credit for making your home more energy efficient, for being a senior citizen and far more. It’s worth reading up about your own situation to make sure that you’re not missing out on any potential tax credits.

It’s narrowed down to five contestants you can vote for on the Cutest Tax Deduction website. Personally, I voted for Noah, who really was last-minute. He was born December 30. The winner will receive a $5,000 U.S. Savings Bond.

But the number of appeals this year has slowed down the system in some counties. There’s a ripple effect likely to affect your taxes if you’re trying to appeal. You can deduct your real estate tax bill on your federal tax return. If you haven’t paid your real estate tax by Dec. 31, however, you won’t be able to take advantage of that fact on your 2008 return. If your federal tax return is looking particularly hairy, this may be a case of ‘get it in, while the getting is good.’

But there’s a drawback that all of this advice doesn’t take into account. If you write off an expense this year, you can’t write it off next year. Sure, your reoccuring expenses will be eligible for deductions next year, but any one-time purchase won’t. If you expect to owe more taxes next year, it might just make sense to wait until after the new year to make some of those purchases.