Top 4 End-of-Year Tax Tips

Mellody Hobson shares important tips to help save you money during tax season.
3:41 | 12/27/11

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Transcript for Top 4 End-of-Year Tax Tips
Melody Hobson president of -- investments is here to tell you now about all the things you can do right to make April 15 that much less painful what's in the long run let's face and Nellie might make. Next New Year's party that much more fun so let's get right into it let's start. With the year that is now ending 2011 is there any tax relief we should be looking for particularly in this year. Yes there's one that is expiring at the end of this year. It was put on the books and 2004 so it says that you can deduct your state and local sales tax. -- are your state and local income tax but not borrow from and this is particularly -- interest of people who live in tax free states. If you think. That you're gonna make a big purchase and you -- at one of those states you wanna make it before the end of the year so you can deduct. That sales tax pirates and get it done would -- -- -- people frequently. Miss out on where should we be paying attention. Okay this is my favorite lot you can shore up your retirement and save on your taxes the same time. But putting more money into your four -- K plan by the end of this year. It's very simple the more you -- and the lord your tax bill because -- putting in pretax dollars. And if your company matches in any way that's even back there so that's one that's very very simple and easy to -- So many homeowners are feeling that -- right now -- is is there -- -- for them to maybe saves money to attempt to achieve one side or the other. Yes I have tickets apps if you're going to pay your mortgage when you pay -- and normally get on January 1 pay at one day early. You can get the interest tax deduction in 2011. Instead of 2012 -- -- move the payment by one day. Make sure that check is dated December 31 and that will help your tax bill this year. The other day if you're thinking of making any kind of home improvement related to energy efficiency. Do it before December 31 when you can't get the deduction anymore. So specifically if you're thinking of buying a more efficient water -- are -- -- learn new windows or insulation at. You can get a 10%. You can deduct 10% of that cost up to 500 dollars as long as you do it before December 30 are. -- so again really get out there and get things done before December 31 -- maybe get paid. A little bit after I also want to ask you a lot of my friends and noticed -- dealing with there of student loans higher education's education students are feeling it's so. Much of this time of years to anything they can do. To offset some of the death of their care. This is a -- one and it's often next. And that is you can deduct up to up 4000. Dollars it's called the tuition and fees did that Sharon. If -- -- couple filing together you make less -- -- 130000 dollars a year. Or an individual filing alone and you -- 65000 dollars a year at last you can deduct up 4000 dollars -- -- tuition and fees. Now -- other deductions you can get if you make more money but they're not as as rich as that 4000 Allard about check. And while I'm on the subject of education if you're -- -- -- And you're buying supplies for your classroom many PE teachers don't know that you can deduct up to 250 dollars that you spend on those supplies by the end of this year. -- so many teachers are doing just that these -- very quickly Melanie it's very -- and does -- especially charitable contributions the gifts that give back come tax time. Yes this is a great one it's a big one a lot of people are -- -- and that the charitable deductions. So if you make a contribution you need to make it by December 31 -- -- -- -- now donate now pay now on the maybe get paid. A bit later melody Hobson thanks as always from the tips thanks.

This transcript has been automatically generated and may not be 100% accurate.

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