WGN-TV Show Notes — December 1, 2002

ANCHOR: ALTHOUGH YOU’RE PROBABLY SWAMPED WITH LAST-MINUTE HOLIDAY GIFT-BUYING, YOU MAY WANT TO SPEND SOME TIME GIVING YOURSELF A GIFT THAT WILL PAY OFF NEXT APRIL.

ANCHOR: WGN’S MONEY SAVING EXPERT ILYCE GLINK IS HERE WITH A FEW YEAR-END TAX TIPS.

GOOD MORNING

ILYCE: IT’S STARTING TO LOOK A LOT LIKE CHRISTMAS, BUT NOW IS THE TIME TO THINK ABOUT SPRING – SPECIFICALLY APRIL 15TH. HERE ARE A FEW THINGS YOU CAN DO BEFORE THE END OF THE YEAR TO MINIMIZE THE TAXES YOU’LL PAY ON THAT DREADED DATE:

TAX TIPS: HOME

“PREPAY JANUARY MORTGAGE PAYMENT

“PREPAY FIRST INSTALLMENT PROPERTY TAXES

“DEDUCT UNUSED POINTS FROM REFINANCING

“HOME OFFICE DEDUCTION

ILYCE: LET’S START AT HOME, WHERE IF YOU ITEMIZE ON YOUR FEDERAL INCOME TAX RETURN, YOU’LL BENEFIT FROM PREPAYING YOUR JANUARY MORTGAGE PAYMENT AND FIRST INSTALLMENT OF PROPERTY TAXES. DID YOU REFINANCE THIS YEAR? YOU CAN ALSO DEDUCT UNUSED POINTS FROM YOUR PURCHASE OR PREVIOUS REFINANCINGS. ALSO, IF YOU WORK FROM HOME, CHECK TO SEE WHETHER TAKING THE HOME OFFICE DEDUCTION WILL HELP.

TAX TIPS: INVESTMENTS

“IF YOU MADE MONEY IN STOCKS, SELL LOSERS

“DEDUCT LOSSES UP TO $3,000 OR SAVE TO USE AGAINST FUTURE GAINS

“WAIT UNTIL AFTER DISTRIBUTION TO BUY MUTUAL FUNDS

ILYCE: IT WAS A LOUSY YEAR FOR THE STOCK MARKET, BUT A FEW PEOPLE MADE MONEY. IF YOU’RE ONE OF THE LUCKY ONES, CONSIDER SELLING A LOSER OR TWO TO OFFSET THOSE GAINS. FOR THOSE OF US WHO JUST LOST MONEY, YOU CAN DEDUCT LOSSES OF UP TO $3,000 OR SAVE THEM TO USE AGAIN FUTURE GAINS. FINALLY, IF YOU’RE GOING TO BUY MUTUAL FUNDS, WAIT UNTIL AFTER THE YEAR-END DISTRIBUTION TO AVOID PAYING CAPITAL GAINS TAX NEXT APRIL 15TH.

TAX TIPS: WORK

“USE UP FLEX SPENDING OR CAFETERIA ACCOUNT FUNDS

“CHECK AND ADJUST PAYCHECK WITHHOLDING

“SIGN UP FOR 401(K) OR OTHER RETIREMENT PLAN

ILYCE: LET’S TURN TO YOUR WORK, WHERE IF YOU HAVE FLEX SPENDING OR CAFETERIA ACCOUNT FUNDS LEFTOVER, YOU’LL NEED TO USE THOSE UP BY THE END OF THE YEAR. CHECK AND ADJUST YOUR PAYCHECK WITHHOLDING, IF YOU HAVEN’T ALREADY DONE SO. COMPARE YOUR CURRENT WITHHOLDING WITH LAST YEAR’S TAXES AND IF THE NUMBERS ARE DIFFERENT, DIRECT YOUR EMPLOYER TO TAKE A CHUNK OF CASH OUT OF YOUR LAST PAYCHECK TO AVOID UNDERPAYMENT PENALTIES. IF YOU’RE ELIGIBLE, SIGN UP FOR YOUR EMPLOYER’S 401(K) OR OTHER RETIREMENT PLAN.

TAX TIPS: OTHER DEDUCTIONS

“DONATE TO YOUR FAVORITE CHARITY (GET RECEIPTS OVER $250)

“MEDICAL DEDUCTION?

“CHILD CARE CREDITS

“OPEN ROTH IRA, CONVENTIONAL IRA

ILYCE: FINALLY, TAKE ADVANTAGE OF OTHER DEDUCTIONS. DONATE TO YOUR FAVORITE CHARITY. DID YOU HAVE AN EXTRAORDINARY YEAR OR MEDICAL EXPENSES? YOU MIGHT BE ELIGIBLE FOR THE MEDICAL DEDUCTION. OR, CHILD CARE CREDITS. FINALLY, BE SURE TO OPEN UP A ROTH IRA AND, IF YOU QUALIFY, A CONVENTIONAL IRA.

ILYCE: THERE ARE A LOAD OF IRS PUBLICATIONS, TOO MANY TO MENTION HERE, THAT WILL HELP YOU WITH THE DETAILS. ALL OF THEM ARE AVAILABLE ONLINE.

AMY: HERE ARE THE IRS PUBLICATIONS THAT WILL HELP. WE CAN LINK TO IRS.GOV AND LIST THESE PUBLICATIONS, OR WE CAN LINK TO THESE PUBLICATIONS IF YOU FEEL LIKE IT.

IRS PUB 537 “INSTALLMENT SALES”

IRS PUB 554 “SALES AND OTHER DISPOSITIONS OF ASSETS”

IRS PUB 564 “MUTUAL FUND DISTRIBUTIONS”

IRS PUB 526 “CHARITABLE CONTRIBUTIONS”

IRS PUB 561 “DETERMINING THE VALUE OF DONATED PROPERTY”

IRS PUB 550 “INVESTMENT INCOME AND EXPENSES”

IRS PUB 502 “MEDICAL AND DENTAL EXPENSES”

IRS PUB 529 “MISCELLANEOUS DEDUCTIONS”

IRS PUB 919 “HOW DO I ADJUST MY TAX WITHHOLDING?”

IRS PUB 520 “SCHOLARSHIPS AND FELLOWSHIPS”

IRS PUB 970 “TAX BENEFITS FOR EDUCATION”

IRS PUB 530 “TAX INFORMATION FOR FIRST-TIME HOMEOWNERS”

IRS PUB 587 “BUSINESS USE OF YOUR HOME”

IRS PUB 936 “HOME MORTGAGE INTEREST DEDUCTION”

IRS PUB 523 “SELLING YOUR HOME”

IRS PUB 527 “RESIDENTIAL RENTAL PROPERTY”

Dec. 17, 2002.