Financial Fun: Tax Saving Tips for El Pasoans
Tax day is here! One of my least favorite days of the year. Like many, I owed taxes this year but found a way to reduce what I owed with one simple move! You might save on your federal taxes by contribution to a retirement plan! The IRS may give you credit for saving for retirement (income restrictions may apply). That's right! Save for retirement AND potentially save on federal taxes too. Here is what you do:
- Open an IRA (Individual Retirement Account) at any financial institution. Most banks and credit unions will open one for you. You can also open them online.
- Make A Contribution You can contribution up to $5,000 per year (or $6,500 if you're over 50 years old). One catch though. The money you contribute has to be "earned income:. That means "no job - no contribution".
- April 15th Deadline The good people at the IRS give you until tax deadline to contribute to last years limit.