Tax Planning Strategies for Every Season
If you're expecting a refund this year, be sure to file as early as possible, submit your return electronically, and choose direct deposit into your bank account to expedite the process. And double-check your figures. If your numbers differ from what the IRS has on record, your return will be flagged and reviewed — delaying your refund.
Here are some tax tips you can use throughout the year:
Consider an IRA
Up until the tax deadline, you can lower your tax bill and boost retirement savings by contributing to a traditional or Roth IRA. You won't get a deduction if you contribute to a Roth IRA, but your withdrawals in retirement will be tax-free. Check to see this year’s contribution limits to determine how much you’re eligible to contribute. Note that there are income limits for contributing to a Roth IRA.
Boost Your Spouse’s Retirement
If your spouse doesn't have an income from work, you can contribute to a traditional or Roth IRA on their behalf. You can deduct some or all contributions to a traditional IRA for a spouse if your modified adjusted gross income on a joint return is less than $149,000.
Review Your Filing Status
Married couples may find advantages to filing separately. Carefully review your situation and consult with a tax professional to determine if filing separately might be right for you.