Although 2019 has ended, there are still a few things that you can do to save money for your 2019 tax return.
Contribute to an IRA account
Contributing to an IRA is one of the things that you can still do to reduce your 2019 taxes. You can contribute up to $6,000 to an IRA, or $7,000 if you’re 50 or older. The beauty of an IRA is that your contributions will compound tax-deferred.
The deductibility of your IRA is based on certain factors such as your income, tax bracket and whether or not you’re eligible to participate in a company retirement plan.
You can contribute to an IRA even if you have a retirement plan at work; however, depending on your income, you may not be able to deduct the full amount. The IRS provides more details for those not covered by a workplace plan.
If you do have a workplace retirement plan, the deductibility of your IRA contribution is based on certain income levels. For low-income taxpayers there’s an additional bonus called the Saver’s Credit. This could reduce your taxes further by up to $2,000.
You have until 4/15/20 to make contributions to your IRA for 2019 tax deductions. Click here to learn about AHFCU IRA accounts.
Take advantage of AHFCU’s partnership with TurboTax
Allied Healthcare Federal Credit Union has teamed with TurboTax to save you up to $15 on TurboTax and a chance to win $25,000.
TurboTax guarantees 100% accurate calculations and runs thousands of error checks as you go. With TurboTax, you’re likely to get the biggest refund possible.
TurboTax provides online support, advice and offers final review of your return from a TurboTax Live CPA.
Itemize your tax deductions
It’s easier to take the standard deduction, but you may save a lot of money if you itemize, especially if you are self-employed, have qualified expenses that add up to more than the 2019 standard deduction, own a home or live in a high-tax area. The IRS provides an online tool to help you determine the amount you will receive with a standard deduction.
File and pay on time.
The deadline for filing your taxes and paying for any taxes owed is 4/15/20 in order to avoid penalties and interest. The IRS may provide payment options if you’re unable to pay the full amount due by the tax deadline. You can also apply for a low-rate loan from AHFCU to help pay your taxes.