ADVISORY/Spend or Save...Now You Can Do Both; Offset Holiday Spending with a Few Simple Steps to Slash Your Taxes and Get More Money Back Come April.

News Editors/Business Editors

ADVISORY...

--(BUSINESS WIRE)

This year, the average person will spend more than $670 on holiday gift giving. A single person making about $50,000 a year could offset holiday spending with over $1,300 in tax savings. (See chart below.) There are a few simple steps taxpayers can take before New Year's Day to compensate for their spending with tax savings that may increase their refund.

"It's not too late to save on your 2003 tax bill," said Fred Grant, senior tax analyst with Intuit, the maker of TurboTax software. "Knowing what you need to do and taking action before the end of the year is important because the savings can really add up."

    1.  Pay now, save later. Pay your January mortgage payment or your
        property tax bill before January 1. Doing this can accelerate
        your tax savings, especially if your income is high this year
        or will be lower next year. Be aware if you are subject to the
        Alternative Minimum Tax. Sometimes accelerating deductions can
        cost you more money.

    2.  Donate. Contributing to charity is a great way to get a
        deduction if you itemize. It's as simple as going to the
        garage and finding some items you no longer need or use. If
        you aren't sure about what your donated items may be worth,
        try ItsDeductible software, from the makers of TurboTax. It
        gives you the fair market value of your donations to help you
        maximize your deductions.

    3.  Defer Income by contributing to a tax-deductible retirement
        plan such as an IRA or 401(k). These plans can grow to a
        substantial amount over time on a tax-deferred basis. You can
        contribute up to $3,000 if you're single and up to $6,000 if
        you're married and filing jointly, to an IRA. Those age 50 or
        over can contribute even more.

    4.  Know your AGI. Your adjusted gross income is one of the most
        important numbers when it comes to your taxes. Your AGI
        controls whether you can deduct certain expenses, such as
        medical or education, if you are eligible for certain credits,
        like the child tax credit, and plays an important role in
        determining the extent to which you are taxed.

Here are some sample strategies at work:

For a single person with an AGI of $50,000:
----------------------------------------------------------------------
                                                 Amount   Tax Savings
----------------------------------------------------------------------
Deductible IRA                                   $3,000          $750
----------------------------------------------------------------------
Charitable Donations                             $1,000          $250
----------------------------------------------------------------------
Pay Jan. 2004 mortgage payment in Dec. 2003      $1,500          $375
----------------------------------------------------------------------
TOTAL TAX SAVINGS                                              $1,375
----------------------------------------------------------------------
Itemized, federal income tax only


For a married couple filing jointly with an AGI of $90,000:
                                                 Amount   Tax Savings
----------------------------------------------------------------------
Deductible IRA                                   $6,000        $1,500
----------------------------------------------------------------------
Charitable Donations                             $1,000          $250
----------------------------------------------------------------------
Pay Jan. 2004 mortgage payment in Dec. 2003      $1,500          $375
----------------------------------------------------------------------
TOTAL TAX SAVINGS                                              $2,125
----------------------------------------------------------------------
Itemized, federal income tax only

For more tax related information and year-end tips, visit our website at www.turbotax.com.

PLEASE FEEL FREE TO PRINT ANY OF THE ABOVE INFORMATION FOR EDITORIAL PURPOSES.

To schedule an interview with Fred Grant, contact Colleen Ferrin at 858-525-7487 or email at [e-mail].