As the year is winding down, now is a good time to start tax planning strategies, both for the current year taxes but also for the upcoming tax year.  If you wait until April 15^th to make changes to your tax situation you will have lost over one quarter of the year. 

First and foremost, don’t give the government a loan.  Look now at your withholding amounts and make certain you are not having more withheld than is necessary.  You don’t need the government to be your savings account.  You will be much better offer saving the excess withholdings yourself.   

A strategy for the current year is to make sure you are maximizing your tax-deductible contributions to qualified charities and/or taking advantage of the gift tax advantages.  For grandparents, college funds including 529 plans might make a lot of sense or investment programs for grandchildren. 

And finally, if you are still working, make sure you are making the appropriate changes to your 401k deductions, look into IRA options to supplement your 401k savings and inquire if your organization has 457b plans available.   All of these options may have tax benefits that you can take advantage of this year or next.