How to turn tax day into a $ 6,000 savings opportunity

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IRA Savings and Deductions

If you have the money – and access to your IRA custodian – you can still put money in your account today.

In addition to strengthening your retirement savings, you can reduce your taxes for 2019.

“If you qualify, you can get a deduction of up to $ 6,000 – or $ 7,000 if you are 50 and over,” said Neal Stern, CPA and member of the American National Financial Literacy Commission. Institute of CPAs. “You don’t need to detail to get it. ”

The amount you can deduct is based on two criteria: your adjusted adjusted gross income for this taxation year and your access to a workplace pension plan.

Single taxpayers who have a plan at work are eligible for a full deduction if they have a 2019 MAGI of $ 64,000 or less ($ 103,000 if they are married and jointly produce).

Tax relief begins to disappear beyond this point, and single filers do not get any deduction if their MAGI is $ 74,000 or more ($ 123,000 for married and jointly filing).

Taxpayers who do not have a retirement plan at work can benefit from a full deduction regardless of their MAGI if they are single, heads of household or eligible widowers.

The same applies if they are married and their spouse is also not covered by a workplace pension plan.

The limits of the deduction begin to take effect if the spouse of a taxpayer has a plan at work.

Last chance to save on health

Jamie Grill | Getty Images
People with high deductible health insurance plans can also take the next few hours to contribute to a health savings account for the 2019 tax year.

HSAs have three key tax benefits: you contribute to them on a pre-tax or tax-deductible basis, and your savings will grow tax-free. Use the duty-free product to cover eligible medical expenses.

For 2019, you can contribute up to $ 3,500 if you have auto coverage only. This number rises to $ 7,000 for family plans.

Save an additional $ 1,000 on your HSA if you are 55 and over.

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