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This is another reminder to begin preparations for filing 2014 tax returns. Whether one made some tax moves before the previous year ended or not, there could still be some time to lower the taxes one owes for 2014. Here are a few suggestions on the options available to taxpayers:
The self-employed can take a deduction for their contributions to their retirement plan. It’s a particularly valuable deduction because it is claimed as an adjustment to income on form 1040, line 28. However, this deduction is only available if the taxpayer had already established the SE 401(k) plan and the account before the year-end.
Otherwise, taxpayers can instead make a contribution to an IRA. This option is available until April 15 and if one qualifies for it, it can be claimed as an adjustment to income and can be used to increase other tax credits.
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Additionally, individuals who have enrolled in a high-deductible health insurance plan can make tax-deductible contributions to a health savings account. Like contributions to an IRA, this option is available until April 15 and can be claimed as an adjustment to income. Those who take this option will also need to include a completed Form 8889.
There are other common deductions that many people overlook when filing for tax returns. These include job search costs, mortgage costs, and lifetime learning credit, among others.
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Wall and Associates is one of the leading professional tax representation and negotiation firms in the country. For more resources about filing taxes correctly, visit this Google+ page.
