Buy over the counter Medication before 2011
If you have a Health Savings Account (HSA) you should use it to make over the counter drug purchases before 2011. Although the money in your HSA rolls over from year to year, starting in 2011 funds that were once eligible to purchase over the counter medication cannot be used to buy them without a prescription. Stock up now while you can!
Flexible Spending Account (FSA) "Use it or Lose it" Provision
People with FSA's should spend all the money in the accounts before Jan. 1, 2011 or you may be subject to the "use it or lose it" provision.
Taking a loss could actually help
If you have a large net capital gain in 2010 you could reduce your tax liability by selling stock that will generate a loss before December 31st, 2010. If legislative action doesn't occur before 2011 capital gains could be taxed by as much as 35%.
Instant tax savings with 401K contributions
Now is a great time to consider increasing contributions to your 401K before the New Year. 401K contributions are made pre-tax, which reduces taxable income and possibly your tax bill. You can make changes now for some last minute tax savings and let them roll into 2011 for future savings.
Need a 2010 tax deduction even if you do it in 2011
If you are eligible to deduct Traditional IRA contributions on your 2010 tax return you can do so now until April 18, 2011. This is a great way to lower your 2010 tax bill if you qualify.
Take your First Time Home Buyers Credit Now
For eligible home purchases in 2010, taxpayers have the option of claiming the First Time Home buyers credit on either their 2010 tax return or 2009 amended return. Filing an amended return will give eligible taxpayers an option to receive the money now rather than waiting to file for it later.