Six Tax Moves for $10,000

You can save up to $4,000 for a stay-at-home spouse (subject to some income limits) and deduct it from your taxable income -- and, if they're over 50, even more. Still, that deduction alone could easily cut $1,400 a year off your tax bill.

5. Nine-to-Five Family

If you're one of the millions who are self-employed or running your own business, you need to know about some creative money moves.

Let's say you need help with your computers, filing or dealing with the back office. Have you ever thought about hiring your kids? You can.

You can hire your kids, pay them and fully deduct the payment from your business income. Even if you pay your two kids $150 a month, your annual tax savings would run close to $1,300.

What's more, you're keeping your business earnings within the family, and you get to deduct what you might have just given to them anyway. You're free of any tax implications so long as they earn less than $4,750 annually.

By the way, think broader than just your kids. I rely on my mother to manage my real estate properties. That enables her to deduct everything from her gas to her cell phone -- even a meal -- as long as these expenses are "necessary and ordinary" (as the IRS puts it) to the business.

6. Goodbye, Plastic

My final move really applies to families carrying debt. Let's say you're the typical family carrying the average $13,000 in ongoing credit card balances.

If you were to refinance that 19.2% credit card debt with a home equity loan at a 7.5% interest rate, you could save just over $1,500 in interest costs. And, since in some cases that interest is deductible, you could save another $532 in taxes, which would bring you more than $2,000 in annual savings.

One important caveat: Many people who use low-interest debt to pay off credit cards end up with more debt in the long run because they don't curtail their spending. And there is a cost to refinancing, so it generally only makes sense if you plan on staying in the house for several years or more.

Can't take these deductions this year? Plan your finances to take them next year. Either way, remember that income limits do apply to some of these tax moves.

If you aren't sure how to use these ideas, consult a professional adviser. The rules can be complex. The fees spent may well be worthwhile -- and they may even be deductible.

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