_ CONTRIBUTE TO AN IRA

You have until Wednesday to put money in and designate it as a 2008 contribution.

You may contribute up to $5,000 this year. If you're age 50 or older, you may contribute an additional $5,000 as a catch-up contribution.

"The IRA remains a great tax strategy, since many qualifying taxpayers can deduct the full $5,000 a year for a traditional IRA contribution and qualifying married couples can deduct up to $10,000 a year," said Larry Contreras, owner of Liberty Tax Service in The Colony, Texas. "Generally, if someone isn't covered by an employer's retirement plan, that person can deduct the full amount."

Contributions to a Roth IRA aren't deductible, but if you meet certain requirements, you don't pay tax when you withdraw the money at retirement.

_ TO ITEMIZE OR NOT?

Decide whether you should itemize deductions or take the standard deduction. Both will reduce the amount of income on which you are taxed, but you can use only one.

"The only sure way to determine which method saves the most tax dollars is to run the numbers," said the Texas Society of Certified Public Accountants.

Use Schedule A _ the IRS form for itemized deductions _ to list all your deductible expenses and compare the total with the standard deduction for your filing status. If your actual itemized expenses exceed the standard deduction, you'll save money by itemizing.

If not, take the standard deduction, which for the 2008 tax year is $5,450 for single taxpayers and $10,900 for married couples filing a joint return.

_ OVERLOOKED DEDUCTIONS

An itemized deduction that taxpayers shouldn't overlook in this economy is the one for job-search expenses. You can claim this deduction only if:

_ You're not looking for a job for the first time.

_ You're searching for a job in your current occupation.

_ There wasn't a "substantial break" between the ending of your last job and your search for a new one.

Just how long is a "substantial break?" That's not clear.

"There is no set amount of time for this wording," said IRS spokesman Clay Sanford in Dallas.

"A deduction such as this could be disallowed based on facts and circumstances of an individual situation," he said.

If you're eligible, you can deduct employment and outplacement agency fees you paid in looking for a new job. You also can deduct amounts spent preparing and mailing your resume to prospective employers.

If you travel to an area and, while there, you look for a new job, you may be able to deduct your travel expenses.