4 Last Minute Tax Tips to Help You Save

Reducing your tax liability and saving more are noble goals and are both still possible.  The key to achieving this double bonus during tax season is to take advantage of annual opportunities before it’s too late. [Please note: all contribution and limit numbers that follow are specific to 2014. If you would like updated numbers for 2015 contributions and limits, please visit www.irs.gov] 1. Fund a current or new traditional individual retirement account (IRA) The quickest and easiest way to lower your taxes and increase your savings is to make a Traditional IRA contribution.  If you already have one, contributing is easy and can be done in a matter of minutes.  If you don’t have an existing IRA and you haven’t yet filed your 2014 return, it’s not too late to get started and meet the 2014 deadline.  IRA contributions can be made up to the time you file your return or no later than April 15th. Contribution limits and deductibility vary based on income and filing status.  Below is quick reference to contribution amounts and filing status variations. Contribution Read on! →

Extra Income? What to do before it’s gone.

As spring’s arrival gets closer, you may also be anticipating the arrival of a large inflow of “extra” income.  This may be in the form of an income tax refund, pay raise, annual bonus, stock grant or restricted stock vesting.   Before this extra income actually hits your bank account, take some time to consider the best use for these additional assets.  Otherwise, it is too easy for the additional dollars to erode away while they sit in your checking account commingled with your regular income. Tax Refunds: In the case of a tax refund, let’s first examine the circumstances surrounding a big refund.  If this is a rare occurrence, then you need to consider the best use for your one-time windfall.  This might include a contribution to a Roth IRA, rebuilding your emergency savings or setting aside for an upcoming car purchase. If a sizeable refund is an annual event for you, consider the following.  By withholding more tax than you need on all your paychecks throughout the year, not only are you forfeiting use of that money, but typically Read on! →