2011 is coming to an end and it’s time to maximize your personal tax situation before ringing in the New Year.  Avoid giving Ebenezer Scrooge more tax than you need to.

First, determine your taxable income for 2011. If you cashed in RRSPs, sold an investment property, received a bonus or pay-out from an employer, your income will be different from your regular salary.

If you collected Employment Insurance (EI) and its associated benefits, tax withheld from EI is typically insufficient to cover your annual tax liability.

Don’t get caught off guard by a major tax bill this spring. Meet with a tax advisor now to strategize ways to reduce your taxes. For the majority of Canadians, the most powerful way to reduce taxes is to contribute to an RRSP.

Second, the markets were a roller coaster in 2011 and many people are facing capital losses on their investments. Review your portfolio with a financial advisor to determine if you’d benefit from taking a loss or cashing in a gain.

Third, give money by December 31, 2011 and save big! If you give more than $200 you’ll receive a 29 percent federal credit instead of the 15 per cent credit for donations under $200. Donations also receive provincial credits.

Don’t wait until the last day of 2011 to make an appointment with your financial advisor. Exploring ways to save on 2011 taxes now could save you a hefty tax bill next spring.