Alternating between the itemized and standard deductions is an effective way to reduce your tax liability for taxpayers who are not able to itemize, but have total itemized deductions that are close to the standard deduction and taxpayers who have itemized deductions that barely exceed the standard deduction. For example, imagine that every year the sum of your itemized deductions are just shy of the standard deduction amount. In order to increase your itemized deductions and be able to take a deduction for all the interest and taxes you have paid throughout 2000, prepay some of your 2001 deductible expenses, such as real estate taxes, in 2000. This will allow you to itemize your deductions this year and receive the benefits of your deductible expenses. A great example of how to do this would be if you make an annual contribution to one of your favorite charities.
Many individuals contribute to charitable organizations around the holiday season.