As the tax deadline approaches there is still time for some tax planning that may help reduce your future tax liability!
Don't forget...
Retirement Contributions:
Traditional IRAs - Forgot to make a contribution in the tax year? No problem. Taxpayers have until their tax-filing due date to make a contribution, whether there's a tax deduction or not. Just remember extensions do not qualify.
SEP-IRA - Thinking about opening up a SEP-IRA account to save on taxes? Opening a SEP-IRA or Simplified Employee Pension account, is a great way to contribute to a retirement account and save tax dollars at the same time. The good news is a business has until the tax-filing deadline of the business, including extensions, to open and contribute to an account for the tax year!
Last Minute Estimated Payment
The year may be over, but taxpayers have until January 15th to make their last estimated payment. Making a 4th quarter estimated payment, will help reduce any underpayment penalties and interest that may be assessed if taxes are owed on April 15th. Keep in mind, you don't want to pay too much in estimated payments, just enough to avoid underpayment penalties!
Gather all tax forms and expenses early!
Once the year ends, it is important to start gathering all receipts, tax forms, mileage log, and expenses. Waiting too close to the tax deadline can cause taxpayers to miss out on several tax deductions or credits by not having all their expenses accounted for. Work out of your home? Don't forget about the home office tax deduction!
Last but not least...