Page 6 THE VILLADOM TIMES I • November 30, 2011 Business It’s more likely that you’re thinking of holiday celebrations rather than taxes at this point in the year, but you can make some decisions now that could keep some of your hard-earned money in your pocket when April 2012 rolls around. Everyone should take the opportunity to minimize their tax burden, say tax experts at the New Jersey Society of Certified Public Accountants. There are some simple steps to take at the end of this tax year that will prepare you for April 17, 2012, the individual filing deadline for the 2011 tax year. The NJSCPA’s Top Tips for 2011 Tax Preparation follow. Maximize retirement contributions. Contributions to your 401(k) accounts or other types of retirement accounts can reduce your taxable income. If you do not have a retirement account there is still time to establish one. Some types of accounts need to be set up by Dec. 31, 2011, while others give you until April 2012. Consult an advisor if you have questions. Donate to charity. Looking for a feel-good way to reduce your taxable income? Consider donating to charity. As long as you give to an IRS-qualified organization within the tax year, you usually can claim an itemized deduction for the full amount you give. Check your W-2. Ideally, when tax day rolls around you won’t owe the IRS and they won’t owe you. If you received a large refund last year, consider changing the withholdings from your pay so you are not giving the IRS a free loan or you do not find yourself in the position of owing a large lump sum. If you got married, had a baby, or bought a house, withholding adjustments may be necessary. Account for losses. If you sold any investments at a loss this year, don’t forget to report the loss on your income tax return. Use your flexible spending account. Your flexible spending account is a use it or lose it situation. Don’t Decisions made now could reduce next spring’s tax bill forget to use these tax-free funds you have specifically set aside for health care. If you are coming down to the wire and have not spent your funds, some employers offer a grace period. Look into the options available. At the same time, be sure to gather health care receipts in preparation for filing your taxes. Plan ahead. It’s a horrible feeling when you sit down to do your taxes and you are facing a pile of unorganized receipts, papers, and scribbled notes. Make a commitment this year to organize the paperwork ahead of time. It will make filing your taxes much easier next spring. While April 2012 may seem like a long way off right now, that just means time is on your side to get your ducks in a row. Fall is a great time to lay the groundwork for filing taxes. Remember to consult your CPA with all your tax or other financial questions. If you don’t have a CPA, you can easily locate one online using the NJSCPA’s free, online Find-A-CPA service. Visit www.findacpa.org. For more tax planning advice, visit the NJSCPA website at MoneyMattersNJ.com. While visiting, subscribe to Your Money Matters, the NJSCPA’s free, monthly e-mail newsletter to receive valuable personal financial planning advice throughout the year. PSE&G lowers gas bills; provides tips PSE&G announced last week that it will be lowering residential gas bills by an additional 4.6 percent, or nearly $8.53 per winter month, for the typical residential customer. This latest action by the utility represents the eighth decrease in a row for residential customers, for a total of more than $614, or 35 percent, in savings since January 2009. The price reduction will take effect Dec. 1. Lower market prices for gas, which are partially due to the availability of abundant and lower cost shale gas, are making it possible for PSE&G to pass these cost savings along to customers, company officials said. Under the new supply gas rates, a typical residential gas heating customer who uses 160 therms in a winter month, or 1,050 therms annually, will see a decrease in his or her annual bill of $56, or approximately 4.6 percent. This customer’s annual bill will be reduced to $1,151 from $1,207. A residential gas heating customer who uses 100 therms in a winter month, or 660 therms annually, will see a decrease in his or her annual bill of $35, or about 4.5 percent. This customer’s annual bill will be reduced to $750 from $785. “The eight decreases over three years, including the additional 4.6 percent now, will provide a much needed positive impact for our customers in these challenging times,” said Joseph A. Forline, PSE&G vice president for customer operations. The latest reduction comes as temperatures are dropping and customers try to keep their winter heating bills affordable. In addition to the price decrease, the utility offers suggestions for steps customers can take to reduce their costs even further. Check for sufficient water levels in the sight glass for hot water and steam heating systems to ensure maximum efficiency. Clean or replace the furnace filter on hot air heating systems. Lower your thermostat by just one degree, which may reduce your heating bill by up to three percent. Save even more by lowering your thermostat two degrees during the day and five to 10 degrees at bedtime if health conditions permit. Close dampers in fireplaces you don’t use. (continued on page 12)