Tax Talk: Before You File Tax Return, Consider This

By Brendan Hughes0 Comments

Don’t leave any possible tax refunds on the table when you file your taxes this year, says a recent Chicago Tribune article.

Potential opportunities for savings and refunds include deductions on home-office items and maximum contributions to retirement accounts.
“If your employer does not offer a retirement plan, make sure you make the maximum IRA (or Roth IRA) contribution up to $5,500 (or $6,500, if you are 50 or older). Your spouse may make IRA contributions even without earned income. For example, if both you and your spouse are 50 or older, each of you may contribute $6,500 to separate IRAs if your earned income is at least $13,000. Even if your employer does have a retirement plan, you may still be able to make an IRA contribution. (See IRS publication 590.)”

The article also says to be aware of certain changes to the tax code this year. For example, rules concerning the deduction of medical expenses for you or your spouse if you’re younger than 65 have changed. You may only deduct expenses if they exceed 10 percent of your adjusted gross income (AGI), as opposed to 7.5 percent of AGI if you’re 65 or older.

The article also outlines deductions for self-employed individuals and those with high-deductible health insurance plans.

For more details on how your retirement savings could lead you to more tax deductions, click here.