With the end of the year fast approaching, time is running out to execute tax strategies for 2007.

There are several moves taxpayers still can make to cut their tax bill by timing their income, deductions and retirement and charitable contributions.

About 50 percent of all charitable giving occurs between Thanksgiving and New Year's, according to Charity Navigator, an independent evaluator of charities, which estimates individual donors will give more than $100 billion this year.

"Generally, the end of the year is a big time for charitable contributions for people who itemize," said Tim Prosser, director of institutional trust consulting for TIAA-CREF Trust Co., which has offices in Pittsburgh.

"One special opportunity for charitable giving that could potentially sunset at the end of this year is the Pension Protection Act of 2006," he said. "It allows folks who are at least 70¹/₂ years old to make direct tax-free charitable gifts from their qualified retirement accounts."

Under normal rules, those taxpayers first had to withdraw the money -- taxable income -- from their retirement accounts, and then hope the income tax deduction from the charitable donation was high enough to cover the tax liability.

The Pension Protection Act is a one-step process, with the money going directly from the retirement account to the charity. The maximum $100,000 withdrawal is not included in taxable income. The other big benefit: The charitable gift also satisfies the required minimum distribution from retirement accounts.

Another strategy to reduce taxes is to defer income to next year and accelerate tax deductible items for this year, said Maureen McGetrick, a partner with BDO Seidman in New York.

"For a person who had a large capital loss during the year, it may be beneficial to realize a capital gain that would offset the losses," Ms. McGetrick said.

"Other things people want to consider is the gift tax," she said. "You can give up to $12,000 per year per [individual] tax-free. We urge people in high net worth positions to use the annual exclusion to make gifts."

While Congress has yet to amend the tax code to keep some middle class Americans from paying the alternative minimum tax, which was intended for the wealthy, tax planners are hopeful a 2007 patch will be passed before year-end.

"The consequences are you'll have middle class taxpayers subject to paying the alternative minimum tax if a patch is not passed," said Gene Crescente, a vice president and senior wealth planner at PNC Financial Services Group.

Unlike standard tax calculations that allow multiple deductions, the AMT allows no deductions for children or state and local taxes. Taxpayers who meet certain income or deduction criteria must calculate how much income tax they owe under the standard method and the AMT method and pay whichever is greater.

Even if a person can avoid the AMT, chances are he or she still has to pay taxes.

But you can delay paying them and allow compound interest to work its magic on before-tax income by contributing the maximum amount to 401(k)s, said Tom Crowley, a vice president and senior wealth planner at PNC Financial.

The maximum contribution for 401(k)s is $15,500 and $4,000 for IRAs unless the taxpayer is at least age 50, at which he or she can contribute $5,000 to their IRA. Retirement plan contributions reduce a person's taxable income by that amount.

"If you haven't yet maximized contributions to your retirement plan at work, call your administrator and ask how much you can put in," Mr. Crowley said.

Whatever steps you take now could pay dividends on April 15.

Foundations feel charitable, Page C-2.