Money-Saving Tax Tips
The 2016 tax filing deadline is staring you right between the eyes. Is it possible to still save money before you send off your trusty income tax returns to the IRS?
Don’t be one of the many who make the mistake of shipping their final tax return off the government without considering the last-minute ways to keep your money where it belongs: in your pocket.
Make a Tax-Deductible IRA Contribution
Whether you did or did not have a retirement plan at your workplace, if you file single and made less than $61,000 of adjusted gross income or file married and made less than $184,000 of adjusted gross income, you can still tax deduct your IRA contributions. That means you can put away money and deduct it; $5,500 for those under the age of 50, and $6,500 for people 50 and over.
If your employer didn’t reimburse your expenses at work such as mileage, meals and entertainment, or other work related items, you may be eligible to deduct these off of your itemized deductions.
If your expenses exceed 2 percent of your adjusted gross income, the expenses over 2 percent can come off of your adjusted gross income before you file taxes.
My Charitable Contribution Is Worth What?
So many people just put random numbers down for their non-cash charitable contributions to Salvation Army, Goodwill, etc. If you go to the website www.satruck.com, you can find out a minimum and maximum price on the goods you gave away and take the legitimate deduction you should be taking.
You can still contribute to your HSA
Did you use up your Health Savings Account in 2016? Even though the year is technically over, you can still get a pre-tax deduction for 2016 by funding your HSA account. The maximum allowance is $3,350 for single people and $6,750 for families. Good news for those who if you turned double nickels last year; those 55 and older can drop an extra grand into that account.
Why in the world would you want to pay MORE in taxes than you are supposed to during this tax year? If you are all about paying your fair share, then it’s important you understand all of these rules and how they impact your bottom line.
E-mail me at firstname.lastname@example.org if you want all of the tips that can lower your tax bill.
Ted Jenkin is the CEO of oXYGen Financial, a financial advisory firm managing more than $600,000,000 focused on being your financial advisor and your financial therapist. He is a frequent guest writer for the Wall Street Journal and personal finance expert for CNN Headline News Weekend Express and The Weather Channel.
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