3 Steps to a Midyear Tax Check-in

July marks the halfway point of the 2009 tax year, and there are some simple steps you can take to keep you on track.

1 – Check withholdings: You may want to look at your total income to date, and your total withholdings, to estimate where you stand for your final taxes for the year.  If your taxes aren’t withheld from your income, you may want to take a look at your estimated tax payments made and estimate if you are going to get a return or owe money come April.

2 – Review new tax credits for 2009: With the struggling economy, the IRS continues to add additional tax credits for 2009, which include the $8,000 tax credit for first time home buyers as well as credits for new vehicle purchases and energy efficient home improvements

3 – 401(k) and Roth IRA contributions: Maximum contributions into 401(k) accounts increased in 2009 to $16,500, and the top contribution to a Roth IRA is $5,000.  While stock markets are down, now may be a good time to sock a few extra dollars away into retirement plans if you can afford to do so.