Income Bracket

• The amount of savings a tax deduction provides you depends on the tax rate of your income bracket. For high-income taxpayers, for example, claiming all eligible tax deductions may cause you to have to pay the alternative minimum tax. The alternative minimum tax is a higher amount of tax than you would normally pay with tax deductions.
  
  

Types

• End of year tax deduction possibilities include mortgage interest paid on your primary residence, qualified mortgage insurance premiums and equity loans or lines of credit interest. Business write-offs (an individual's employment-related expenses, such as car mileage) can qualify as tax deductions, as can union and professional dues. Depreciation of your business assets and moving expenses can be tax deductions, as can the cost of tax advice, software and books.
  
  

Charitable Donations

• One of the most common types of year-end tax deductions are charitable donations. These donations can be given in the form of money. You can also donate products you own, such as a used car or other household items. To obtain a tax deduction from donating products to charity, you subtract the fair market value of the items you donated. Many people donate to charity because it is possible to write-off charitable contributions as end-of-year tax deductions. For example, in 2008, during the midst of a recession, 75 percent of Americans still contributed to charity. Charitable donations are what, in large part, enables nonprofits to offer important social services free of charge to those most in need.
  
  

Benefits

• If you are a qualified kindergarten through grade 12 teacher, aide or principal, you benefit from end of year tax deductions of up to $250 for teaching materials. This includes fees for school supplies, books and computer equipment. Students pursuing higher education also benefit from end-of-year tax deductions. In 2008, for example, if your adjusted gross income didn't exceed $65,000, you could deduct as much as $4,000 for expenses related to higher education.
  
  

Considerations

• You can sell stocks that have not performed well to qualify for capital losses, which allows you to deduct up to $3,000 per year. You can also prepay your mortgage and real estate taxes for January to receive a tax deduction for the end of the year. If your job provides you a flexible spending account, consider spending money from your paycheck before paying taxes to pay for healthcare expenses insurance doesn't cover. If you run a business, you can purchase supplies you need for the upcoming year before the year-end and pay your bills for the new year early. Both of these items can be written off at the end of the year.