Happy end of tax year!

If you want to add to your charitable giving deduction, drop off any donated items at your favorite charity today. If you're making a monetary donation, you can make out your check today and get it in the mail and it'll still counts. Same is true for a donation you make today via credit card.

Harvest any tax losses by selling loser stocks today. You can use those losses to offset any capital gains. No gains in 2008? Don't feel bad, you're not alone. But you can still use up to $3,000 of your losses to lower your ordinary taxable income.

Make your Jan. 1 mortgage payment today. That way you can count the interest as part of your 2008 deduction amount. The same strategy applies to your tax-deductible property tax bill payment made today.

If you're spending the last day of the year auto shopping, remember that the tax credit for Honda hybrids expires Jan. 1. But if you buy one today, you'll get not only a fuel-efficient auto, but also a bit of a tax break.

Plus, if you deduct sales taxes instead of income taxes, your new vehicle has an added tax bonus. You can add the sales tax amount you pay on the auto to the standard sales tax tables the IRS provides.

OK, I'll let you go so you can complete these tax tasks and still have plenty of time to deal with party preparation. Have a good time. I'll see you back here at Bankrate when 2009 and the tax-filing season rolls around!

2008 nest egg withdrawals still required

As you may recall, on Monday I blogged about a legislative change to the required minimum distribution rule. These payments, known as RMDs, are mandated when the owner of a tax-deferred retirement account, such as a traditional IRA or a 401(k), turns 70½.

A lot of septuagenarians are not pleased about having to withdraw money from nest eggs that have taken a hit in the declining stock market. So Congress has passed a measure to remove the requirement for 2009. It's expected to be signed into law any day now.

But for some reason, RMDs remained in place for 2008. There was hope, speculation and wishful thinking that the Treasury Department would unilaterally offer relief to folks affected by 2008 RMDs. That hope died yesterday.

Treasury says no: Treasury has decided that things must stay as they are for this year.

Forbes reports that Treasury sent a letter to Capitol Hill informing lawmakers that any administrative changes for 2008 by the department would be "complicated and confusing for individuals and plan sponsors," and the relief would not be available as "uniformly" to taxpayers as the change for next year passed by Congress.

Essentially and literally, Treasury Secretary Hank Paulson is telling retirees, "Better luck next year."

Time to take account action: Treasury's refusal to act means that if you must take out some retirement money for the 2008 tax year, you need to get in touch with your account administrator ASAP and make arrangements for the withdrawal.

Another option is to transfer the RMD amount directly to your favorite charity. Because you won't take possession of the withdrawal, the amount won't be counted as taxable income.

And some account holders get a bit of a timing break. If you celebrated your 70½ birthday (doesn't everyone have half birthday parties?) this year, you can delay your first RMD as late as April 1, 2009.

By deferring your first required withdrawal, you'd usually have to take two years' worth of RMDs -- the one you postponed and the current year's distribution. However, since 2009's withdrawal is suspended, you'll only have to deal with the 2008 amount early next year.