Some will save you time & money when preparing your taxes returns. Other strategies will help you avoid costly penalties and interest on your Federal & State taxes.
These tips will help you lower your blood pressure while keeping more money in your pocket!
1.) Contribute to your Individual Retirement Accounts – IRA’s
If you haven’t contributed to your retirement account for 2017
Do so before the April 17, 2018 deadline
- You can put away $5,500 if you are below 50 Yrs. old
- You can put away $6,500 if you are +50 yrs. Old
2.) Maximize your pension contribution
- Pension contributions are in pre-taxed dollars.
- All pension assets grow tax- deferred
3.) Organize your records for Tax time
- W-2’s and 1099’s, last year’s tax return, list of charitable contributions
- Use tax organizing software – it will help you to print out useful reports with a click
4.) Did you know you can use your RMD for gifts?
- Your required minimum distribution can be given to your church, for gifts to a school or arts organization and you don’t pay the ordinary income tax on those funds.
5.) Itemize your tax deductions
- Worth the trouble – you can save Thousands in deductions
- Deduct mortgage interest
- Charitable deductions
- Miscellaneous deductions – Tax preparation, Investment Advisory fees, job hunting expenses & home office
6.) Use the Home Office Deduction
- The eligibility rules have loosened up for the home office deductions
7.) Why not start a 529 account for college education
- You can contribute up to $14,000 a person as a parent or grandparent
8.) File and Pay your taxes on time
- If you can’t finish your return – you must pay your taxes by 4/17/2018
- You can file for a 6 Mo. Extension – 10/15/ 2018
9.) File Electronically
- IRS processes these faster than a paper return
- You will receive your refund typically within 21 days!
- You may need help with your investments and your return!
Written by: ||elizabeth genter, schenley president||