Last Minute Tax Tips
With the tax deadline just a few weeks away, our Certified Financial Planner, Denisa Tova is here with a few last-minute tax tips.
You can still fund a few accounts before you send in your tax returns.
You can fund your regular or Roth IRA by April 17. You can put in $5,000 if you are under age 50 ($6,000 if you are 50 or older), and you must have earned income.
You can contribute to SEP IRA and other pension plans. Unlike with regular IRAs, you have until Oct 15 to make the contribution if you are filing extensions.
Contribute to health savings accounts. You may deduct up to $6,150 per family ($3,050 single) for a health savings account if you had an approved "high-deductible" health plan linked to the health-savings account. The contributions may be made until April 17.
Lastly, a couple of housekeeping items.
Don’t forget to sign your returns. They are not legal documents unless you do. This will prevent delays and unnecessary penalties.
If you are mailing a payment to Uncle Sam, make sure you make out the check to the US Treasury, not the IRS.
One more over-looked deduction is for charitable gifts. Employees who donate to charities via payroll deduction often forget to include the donations on their personal tax returns. The number isn't on the W-2 form.