Ask an Accountant – Last Minute Tax Deductions

I’m so glad our taxes are done and mailed!  If you haven’t done yours yet, MomonDealz has an My “Ask An Accountant” series that should help with many questions that may arise. If you have additional questions, you can email cjwtaxpro@gmail.com.

Please keep in mind this post is for informational purposes only and answers given are very general. Do not rely on this column for definite tax answers as many things depend on individual circumstances. Please contact your personal accountant or financial advisor for your particular situation.

Still looking for ways to slash your tax bill?

This year you have a little extra time to do so. Consider contributing to an IRA. Because tax day falls on a Sunday this year & April 16th is a Washington DC holiday, 2011 Individual Tax returns are not due until Tuesday April 17th 2012. This means you have until April 17th 2012 to contribute. Taxpayer (and spouse) can each contribute up to $5,000 to an IRA (6,000 if they are 50 or older at the end of 2011). This can certainly reduce your tax bill significantly and may also give you additional benefit due to a “saver credit” aimed at encouraging lower income taxpayers to contribute to their retirement.

photo credit: austinpost.org

IRS Circular 230 Notice: Any U.S. tax advice in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

Print Friendly, PDF & Email