Organizing your financial records is a great way to make tax preparation less taxing, and ensures you don’t miss any potential deductions.

We are going to take a break from tax planning this week. Instead, thefamily of Bradstreet & Company would like to wish you and your family themost joyous holiday season and best wishes for 2010.

Before Santa comes to visit, here is a year-end tax savings tip to consider:tn_santaGo through your house and garage and see what items you have not used in the last two years and donate them to charity. You can clean out space for all the new toys that are coming and receive a tax deduction for it!

In 2009, dependent children (up to age 18, or age 23 if a full time student) with investment income exceeding $1,900 will be subject to the Kiddie Tax. This means the income will be taxed at the parent’s highest marginal tax rate.

If you are required to make a fourth quarter estimated state or local (city) tax payment you have until January 15, 2010 to make your payment. However, if you make the payment now you may be able to take the tax deduction on your 2009 federal tax return instead of waiting until 2010 to take the deduction.

For the last several years you have had the choice of using the Hope Education Credit, the Lifetime Learning Credit, or the Tuition and Fees Deduction to help defray higher education expenses.tn_educationFor 2009, the new American Opportunity Credit will replace the Hope Credit for most taxpayers. The new credit has several advantages over the Hope Credit.