The two biggest ways to lower your 2013 taxes are to increase your deductions before the end of the year or decrease your income subject to tax.

(1) Make additional charitable contributions of cash or property-particularly unwanted household items and clothing. An excellent way to increase non-cash contributions is to make gifts of appreciated property, particularly securities. By doing this, you receive a donation for the fair value on the date of the gift. The big advantage of doing this instead of selling it and make a cash donation is not having to pay tax on the gain. If you do this discuss with your broker which securities would be best to donate. Your broker will take care of transferring the securities to your designated charity.

(2) Make a contribution to your traditional IRA or SEP (you have until April 15, 2014 to make a contribution for the 2013 tax year).

(3) Pay health insurance premiums and other medical expenses in 2013 instead of next year. The 2013 threshold for medical expenses rises to 10% of Adjusted Gross Income (7.5% for taxpayers 65 or over).

(4) Make the January payments for your mortgage, mortgage insurance (deductible in addition to interest), and 2014 property taxes in December. If you pay these by escrow, direct the mortgage holder to take them out in December. Read More