Still doing your taxes? Check out these tips

Q: Any last-minute tips on how can I lower my tax bill?

A: As simple as it sounds, you need to make sure you're taking advantage of all the breaks available to you.

That means maximizing your deductions and credits.

• A deduction is anything that will lower your income, bringing you to a lower tax bracket.
• Credits are even more valuable than deductions. They lower your tax bill dollar for dollar. The per-child tax credit is $1,000 for this filing year (it phases out when adjusted gross income tops $75,000 for singles, $110,000 for couples).

Despite these freebies, some people don't take full advantage of the breaks the government has to offer. USA Today, for example, reported that many, many eligible parents with kids in college aren't taking advantage of the Hope Credit or Lifetime Learning Credit, which could be worth thousands of dollars a year. Among the other perks people often miss are deductions for:

• Student loan interest
• Points you paid getting a mortgage or refinancing
• Job hunting expenses
• Charitable contributions, including mileage you used when you volunteer

Last year's tax return comes in particularly handy in this exercise. Compare it to this year's to see if you've missed any deductions or credits you typically take.

Jean Chatzky’s Bottom Line:
This week: Making yesterday's IRA deposit today
Sure it's 2004. But you can still make IRA contributions today and have them count for 2003's taxes.

• The Stats: Every year, you can contribute up to $3,000 each for you and your spouse, even if one of you isn't a wage earner. All or part of your contributions will be deductible if you're not covered by a company retirement plan or if your adjusted gross income is less than $70,000 for couples or $50,000 for singles.
• The Alternatives: If you don't meet deductibility requirements, open a Roth or nondeductible IRA. The interest grows tax-free or tax-deferred, respectively, until retirement.

Jean Chatzky is the financial editor for “Today,” editor-at-large at Money magazine and the author of “Talking Money: Everything You Need to Know About Your Finances and Your Future.” Copyright © 2004. For more information, go to her Web site, www.JeanChatzky.com.