The financial year will soon have drawn to a close before we even know it, and that’s why you should be thinking about any tax breaks that you are eligible for right now. It doesn’t matter whether you are simply looking to reduce your tax burden only because you can or because you have to, tax breaks still carry the same importance. It’s always a good thing to see what you qualify for and how you can reduce your tax liability. The good news? You might still be eligible for a lot of tax breaks in 2010. The bad news? You’ll have to move fast to make sure that you qualify for these tax breaks.

Hybrid vehicles

There was a tax credit passed in 2006 that still applies to hybrid vehicles, but it will lapse on…you guessed it, December 31st 2010. If you do buy a hybrid then, you’re due tax breaks. But there are caveats. These tax breaks are valid only for the first 60,000 cars sold by a manufacturer. That disqualifies a lot of models. But there are still some left. Visit fueleconomy.gov to see which ones still qualify for the tax breaks.

Green homes

If you make improvements to your home that make it more of a green home, you’re due tax breaks. For instance, certain home improvements can result in a credit of 30% of the cost including installation up to a total of $1500. Moreover, that cap is not in place if you are using a major alternative energy source, such as solar or wind power based home improvements.

Retirement savings

If you haven’t yet contributed to your 401k or IRA account, what are you waiting for, Christmas? Stash that cash in your nest egg and open a retirement account if you don’t have one. Any contribution towards a 401(k), 403(b) or Traditional IRA is tax-deductible and that certainly helps. 401(k) and 403(b) contributions need to be done by December 31, 2010, but you do have until April 15, 2011 to contribute to your IRA. The one thing you should do is ensure that you mention this contribution is meant to count towards 2010. Those wascally wabbit s at the IRS can be wevy wascally.

Charitable causes

Making a contribution towards a charitable cause means you can get tax breaks too. It doesn’t matter if the item donated is in good condition, it still counts. Just ensure that you get a receipt for whatever donation you make. That’s the important thing. That and the spirit of giving. But maybe the receipt matters more. Just saying. You can donate stock to charity too, so you don’t have to pay capital gains taxes and the entire stock can then be deducted by you.