Slash your tax bill

New rules and a new President have changed the tax game. Use these strategies to save on your 2008 bill - and reap even bigger savings in the years to come.

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1. 2008 return: Profit from your pain (Part 1)

<b>2008 return</b>: Profit from your pain (Part 1)

You may blanch at the beating your portfolio has taken lately. But the IRS gives the situation a positive spin. The losses from stocks, bonds or mutual funds sold in 2008 can offset gains elsewhere in your portfolio. No gains? In that case, use the losses to write off up to $3,000 in ordinary income on your return. That will lower your adjusted gross income, cut the amount you owe and help you qualify for more tax credits and deductions. If your losses exceed $3,000, you can carry them forward to future returns.

By Carolyn Bigda, Money Magazine

NEXT: 2008 return: Snag new credits

Last updated March 02 2009: 9:16 AM ET

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