Tax Day is fast approaching, with Americans needing to either file a return by April 18 or ask for an extension. If you’re among the millions who tend to wait until the eleventh hour to file, there’s still time to take steps that can reduce what you owe or land a bigger refund.
About 91 million people have filed tax returns as of April 1, according to the most recent IRS statistics. In a typical year, the tax agency receives about 160 million tax filings, which means that almost 70 million Americans had yet to file their taxes in the last two weeks before the deadline. So far, the typical refund is $3,226 in 2022, the agency said earlier this month. Among the strategies still open to taxpayers who have yet to file: Socking money away in either an Individual Retirement Account (IRA) or a Health Savings Account (HSA),Eric Bronnenkant, head of tax at Betterment, told CBS MoneyWatch. These strategies can help lower your taxable income while also offering longer-term advantages through increased retirement savings or the triple-tax benefits provided by an HSA.
“The IRA and HSA deadline is the tax filing deadline of April 18,” Bronnenkant noted. “Once you have missed out on them, you can’t get them back again.”Here are some last-minute tax moves that can put money in your pocket.Invest in an IRATaxpayers can still invest up to $6,000 in an IRA for the 2021 tax year through April 18, according to the IRS. For people who are over 50, that amount is bumped up to $7,000 in order to help older workers save more for retirement. Traditional IRAs help lower your tax burden because they can be deductible up to the contribution limit, which means your taxable income will be lowered by the amount you put in the IRA. At the same time, you’ll be saving money for your golden years, a tax-preferred benefit that can have big returns over a career.
“Especially for new workforce employees, it may be tough to put money in, but that can pay off long term,”…
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