New Year's Eve means that we all have today — one last day — to get our finances in order before the old year wanes.

For taxes, you can still make a charitable contribution and claim a deduction on your 2009 taxes. Some people like to charge donations on their credit cards at the last minute (that would be today), so they have it deducted for 2009 even though they don't actually pay the bill until next year.

And there's even more time to contribute to your retirement funds.

That's because the Internal Revenue Service says you may still make tax-deductible contributions to a traditional IRA up until the 2009 tax filing deadline for the 2009 tax year (April 15, 2010).

Before you get overwhelmed by the thought of a brand-new financial system or a radical overhaul of your way of life, stop and take a breath.

You also can plan now for 2010 and be early. You can carefully check if any major purchases — a first house, a car — can help you qualify for credits or breaks.

Honolulu-based certified financial planner Roberta Lee-Driscoll tells clients to start with small steps. Her best advice: focus on "practical, doable, what human beings can do."

Lee-Driscoll has helped hundreds of people get a grip on their finances, by teaching skills and routines that help clients cut expenses, pay off debt and build retirement savings.

It's the same concept that helps dieters. Trying to lose 5 pounds is a reachable goal, while 50 pounds may seem too daunting all at once.

"Do something that's really realistic and tangible that you can actually accomplish," Lee-Driscoll advised.

Instead of panicking on the last day of the year about the opportunities you missed, she proposes making a realistic commitment to something you will do for 2010.

"What I always tell clients is please start small. And please make a commitment," she said.

David Ramirez — owner of Tax Relief Services — offered last-minute tax advice, including "if you have state taxes due, you can pay today and take a deduction for this year."

If you think your income for this year will be higher than for next year, you can pay your mortgage today so that deduction falls in this year.

Ramirez works on lots of tax returns each year, including those initially prepared by individuals who are not professional tax preparers. He said the tax laws do change every year, so people need to do their own research if they don't hire a professional.

He ended up redoing the return of a man who overpaid by almost $1,000 because he didn't realize that the interest on U.S. savings bonds is exempt from state and local taxes.

Another last-minute possibility is to clean out the garage, the closets of all those items that you don't really need, make a detailed receipt and donate them to The Salvation Army, Goodwill Industries, Savers or another charity that collects used items.

But Ramirez reminds everyone to get a receipt. The IRS requires "for any contribution at all, you have to have some form of record."

Certified public accountant Ted Talbott specializes in helping people straighten out their tax troubles — especially those who don't file or file late.

"The best thing they can do is clean up their act in terms of record-keeping," said the Käne'ohe-based Talbott.

He advises people to put all their receipts and canceled checks in one place throughout the year, whether it's a drawer or a shoe box or a big envelope.

"Planning ahead saves you money. Having the records saves you money," Talbott said. "It's not that difficult."

Even for a small business, he said, sit down with the checks "like you were dealing cards" at the end of the year to sort out expenses and income.

"Most of it is just collecting the pieces of paper," Talbott said.

He said some clients pull out last year's tax return, make notes on the margins and use that as their tax notes.

You might also consider Lee-Driscoll's advice that even a small change can help for those consumer who follow through and make the commitment they talk about in the first week of the year.


Curious about consumer issues or have a tip to share? Contact Robbie Dingeman at 535-2429. Post your comments at WWW.HONOLULUADVERTISER.COM.