So you are not alone! Tax time can be stressful for everyone. One good news this year is that if you like to wait till the last minute to do your taxes, you actually have 3 extra days. Yes, the tax filing deadline this year is April 18’th 2016 thanks to Washington D.C. Emancipation day holiday which falls on the April 15’Th this year.
While Uncle Sam can come across as a really scary guy at first, there are several things we can still do to make sure we are not giving away too much of our hard earned money. Your options for tax saving are limited once the year turns over but below is one thing you can still do to ensure a lower tax bill.
While Uncle Sam can come across as a really scary guy at first, there are several things we can still do to make sure we are not giving away too much of our hard earned money. Your options for tax saving are limited once the year turns over but below is one thing you can still do to ensure a lower tax bill.
Contribute to your Traditional IRA account
Not everyone will qualify for this contribution to be deductible but it is well worth checking into. There is a lot of confusion regarding who can contribute to their IRA account and when. Below are a few quick tables explaining the eligibility requirements for this year.
If you (and your spouse if married) are covered by a retirement plan at work
If you (and your spouse if married) are not covered by a retirement plan at work
If you are married and only one spouse is covered by a retirement plan at work
Key points to remember about Traditional IRA Contributions
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Bottom Line
Consider the idea of making a deductible contribution to your IRA instead of paying more in taxes to the IRS. Remember you don’t have to make the contribution at the time of filling your tax return just as long as you make it before April 18’th 2016. For people who are fortunate enough to get a refund, it would be a smart choice to use your refund amount towards your IRA contribution. Your retirement year in thank you!
For more information about 2015 income taxes please click the link below
KEY FINANCIAL DATA FOR 2015 fact sheet
For more information about 2015 income taxes please click the link below
KEY FINANCIAL DATA FOR 2015 fact sheet
Written By:
Rajiv Dixit Financial Advisor & Portfolio Manager Parks Capital | Read more about Parks Capital & Rajiv Dixit by visiting Parks Capital at a Glance |