Last Minute Tips For Lower Taxes

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Tax day is just around the corner. For some this can be a fun time of year when you get mailed a check, but for many, it's a stressful time that involves paying (sometimes substantially) into the government. While it may be too late to lower to tax bill for last year by selling stocks, donating to charities, or use many other deductions, there are still a few ways left for you to hang onto your hard earned money.

Rather than giving your money to Uncle Sam, you can invest in yourself this spring by doing one of these three things:

  • IRA Contributions (traditional, not Roth)
    • Must have been opened in 2014
    • Must be younger than 70.5
    • Claim Traditional IRA Contribution
      • Can be done before contribution is made, but the contribution must be in place by the tax return due date (April 18 this year).
  • Self-Employed 401(k) Contributions
    • Must have been opened in 2014
    • Must be younger than 70.5
  • HSA Contributions (Health Savings Account)
    • Must have been opened in 2014
    • Must be younger than 70.5
While you're still spending money choosing one of these options, isn't it better to be putting money towards your retirement and health?

A few other things to consider with your taxes this year. While tax day falls on April 15, this year they are not due until Monday April 18. This is due to Emancipation Day (April 16) falling on a Saturday, meaning it will be celebrated on the 15 and offices will be closed. So while you should already be glad slavery was ended, this can be another small perk of 3 extra days to file this year.

If the date is still coming up too fast despite having the extra time, make sure you file for an extension. This can be done using FORM 4868 and can give you up to 6 months extra for filing. You will still be penalized for paying late at a rate of 0.5%/month. If you don't file an extension you will be penalized at a rate of 5%/month. So don't forget that step as it can be a costly one. Hopefully you've planned ahead though and can pay your taxes on time saving you any interest payments.

Finally, in case you haven't filed yet here are some options:
If none of those options work, buy a tax program or RUN to your nearest tax preparer to get things done on time.

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