Unfortunately it’s that time of year when most of us grudgingly write a few checks to Uncle Sam. And while it’s too late to cut back your tax burden from the year’s past, there are a few things you can check out to see if you can save money this year.
Here are three ways you may be able to help with taxes:
Retirement plans. In 2004, contribution limits to 401(k), 403(b) and 457 plans increased $1,000–$13,000.
Limits on SIMPLE plans rose $1,000–$9,000 for small-business owners and employers. And if your employer offers a retirement plan, you can get a deduction for contributions to a traditional IRA if you make less than $55,000 a year, or $75,000 for a couple filing a joint return.
College tuition. Deductions from college tuition increased from $3,000 to $4,000 for those who make less than $65,000 as an individual or $130,000 for a couple filing a joint return. Those with an income between $65,000 and $80,000 (or $130,000 and $160,000 for a married couple filing jointly) can deduct $2,000 from their tax return.
Health savings account. HSAs allow you to save money to pay for health-care expenses from a tax-free account. Those with “self-only” plans can contribute $2,500 and families can store up to $5,150 in pre-taxed dollars in a HSA account.
—adapted from Time
Talk to your tax couselor about these and other financial tax tips.
Hone your skills for work and family and you hone them for living life to the fullest