There's still time to take action that might save money on your 2010 tax return before April 15 arrives. The Internal Revenue Service suggests taking a second look at these areas of tax planning:

Charitable Contributions—Make 2010 deductible charitable contributions no later than Dec. 31. If the taxpayer's goal is a legitimate tax deduction, give to a qualified public charity and keep a paper trail. Clothing and household items must generally be in good used condition or better to be deductible. Donations charged to a credit card by Dec. 31 are deductible for 2010 even if the bill is paid in 2011. Taxpayers must itemize deductions on a Schedule A in order to benefit.

Bryan E. Spencer is a financial planner and staff accountant with Russell Ingledew, CPA Inc. in La Jolla. He offers this advice:

"Contributions to charitable organizations may be taken as a deduction, but how much and if a certain type of deduction may be taken can sometimes be confusing," he said. "Qualified organizations include nonprofit groups that are religious, charitable, educational, scientific, or literary in purpose. They are not country clubs, fraternal orders, civic leagues, labor unions, chamber of commerce, political candidates or organizations and communist organizations."

To verify a charitable organization, Spencer suggests contacting the IRS at 877-829-5500 or viewing the online version of IRS Pub. 78 at irs.gov. 

Spencer explains that the following are deductible contributions:

• Cash, check, or money order given to a qualified charitable organization
• Property
• Out-of-pocket expenses while serving as a volunteer
• Automobile expenses while serving as a volunteer ($0.14 per mile)
• Expenses paid for a student living with the taxpayer ($50 per month)
• Charity volunteer's travel expenses away from home, including meals/lodging

He says these are nondeductible contributions:

• Political contributions
• The value of a taxpayer's time or services
• Donations to organizations engaged in lobbying, for law changes, or for the taxpayers trade or business
• Tuition at a school that is a qualified charity
• The amount of a contribution where a benefit was received in exchange.

Spencer offers these additional tips:

• If more than $500 of noncash items are donated, Form 8283 will need to be filed with your tax return.

• If more than $5,000 of noncash items are donated, an appraisal of the values of donated property may be required.

• The total deduction for all charitable contributions is limited to a varying percentage of the taxpayers Adjusted Gross Income. Be sure to talk to your tax adviser for details.

• When donating a vehicle, special rules apply. A deduction is generally equal to the fair market value of the item at the time of the donation. If the organization sells the donated vehicle without a significant intervening use or material improvement, then the deduction is limited to the gross proceeds received from the sale.

Winterize Now, Save on Taxes Later: The Energy Tax Credit provisions from the 2009 Recovery Act are set to expire at year's end. Two credits provide tax incentives for individuals to invest in energy-efficient products. Up to $1,500 can be claimed in 2010 for qualified home improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems. Also, taxpayers can take a tax credit equal to 30 percent of the cost for qualified residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines.

Sell the Losers: Check investments and consider a portfolio adjustment. Up to $3,000 can be deducted in capital losses each year.

"You can write off up to $3,000 of capital losses against ordinary income—for example, W2 income," said Spencer. "If you have more than $3,000 of capital losses, you can carry any unused amount forward to following years to help offset future capital gains and ordinary income."

Retirement Account Contributions: The maximum 2010 IRA contribution is $5,000 ($6,000 if age 50 or over). Eligible taxpayers can also take a tax deduction for making an IRA contribution. The Retirement Savings Contribution Credit, or "Saver's Credit," is also available to taxpayers who contribute to a retirement plan and whose income is generally less than $55,500. This under-the-radar tax credit may be worth up to $2,000 for eligible taxpayers.

"Generally speaking, if you are married filing joint, have a modified adjusted gross income higher than $177,000 ($66,000 if you are single), and have an employer sponsored retirement plan at work, then contributions to the IRA are not deductible," Spencer explained. 

Required Minimum Distributions: Taxpayers 70.5 or older are required to take 2010 required minimum distributions from IRAs before Jan. 1, 2011. This requirement was suspended in 2009 but for 2010 they must be taken.

Consider a Roth IRA Conversion: Taxpayers may convert other IRAs to a Roth IRA in 2010 regardless of their income. Those who convert before Dec. 31 get two choices to pay the taxes due from the conversion—pay in entirety when filing their tax year 2010 return next year or divide income from the conversion between 2011 and 2012.

Gift Giving: Taxpayers can give a gift worth as much as $13,000 in cash or property in 2010 to another person without having to file a gift tax return.

Save Receipts and Paperwork: Accurate record keeping is a must and also provides a good reminder. 

"One misconception that we see is that people tend to think if they buy items on a credit card, they do not need to keep the store receipts, as the purchase is recorded on the credit card statement," Spencer explained. "The IRS will not accept credit card statements in an audit, so keep your receipts."

Because there are so many exceptions to the rules, Spencer says the wisest thing is to sit down with your tax professional and run projections. Another resource is the IRS website at IRS.gov.

"If your goal is a legitimate tax deduction when considering a year-end charitable donation or donations, do consider all the rules to be sure and also keep a paper trail as a reminder and for substantiation," said Raphael Tulino, a media spokesman for the IRS.