The tax filing deadline this year is April 15, and that date is fast approaching. To help you make the most this tax season, consider these tax-saving deductions and time-saving hints.
Organize documents. The first step is to make sure you have all of your tax documents in order. Make a list of all accounts or employers from whom you should be receiving tax forms, and mark off the list as you receive them.
Contribute to a traditional IRA (Individual Retirement Account). You have until the tax filing deadline to make an IRA contribution for the 2018 tax year. The limit last year was $5,500, or $6,500 if you are over age 50. However, certain rules can reduce the deduction of the IRA contribution, so talk to your CPA or visit IRS.gov to see the deduction limits.
Contribute to your Health Savings Account. Like the IRA, you can make contributions for 2018 into your HSA until April 15. HSA contributions are tax-deductible, grow tax-deferred, and the distributions are tax-free if used for qualified medical expenses.
Import your data. Many online filing tools will let you import your tax documents to make inputing your data much faster. Double-check all the numbers, but this can easily cut your filing time in half.
File extensions. If necessary, you can file an extension on your tax return to extend the deadline a few months. If you think you will owe, you still must pay your tax by April 15.
Allison Nye, Wealth plan design specialist at oXYGen Financial. Co-host of “They Don’t Teach You This” podcast. Connect with her at email@example.com.