* Avoid tax underpayment penalties by adjusting your
income tax withholding over the remainder of 2008. Withholding is treated as having been paid in evenly over the full year.

 

 * Review your investment portfolio for year-end  offsetting of gains and losses. Don't forget that you can apply up to $3,000 of net capital losses against  ordinary income such as wages.

 

 * Make retirement plan contributions up to the maximum  allowed. That's $15,500 to a 401(k) and $10,500 to a   SIMPLE ($20,500 and $13,000, espectively, if you're   50 or older). This year's IRA limit increased from   $4,000 to $5,000 (to $6,000 if you're 50 or older).

 

* Remember that the "kiddie tax" now applies to you if   your child has unearned income over $1,800 this year   and is under age 19 (under age 24 if a full-time   student).

 

* You have until December 31 to take any required
  minimum distribution from your retirement plans. If  you just turned 70½ in 2008, you can postpone a first  distribution until next April 1, but then you'll have   to take two distributions in 2009.