You Can Still Cut Your 2013 Tax Bill!

Yes, believe it! It is still possible to cut the taxes you have to pay on your 2013 tax return. How???

Put money into an IRA for yourself (and for your spouse if married) for 2013. It’s possible to designate any contributions made up until April 15th as 2013 contributions and to deduct them on your tax return. You can even file your tax return, claim the IRA deduction, and then fund the IRA contribution for 2013 with the refund when you receive it!!! Just as long as you fund the contribution before April 15th.

If you are not covered by an employer plan, contributions will always be deductible. If you are covered, then there are income limitations. For those MFJ, income must be under $85,000 for the full deduction. There is a partial deduction for income between $85-110,000. Singles start the phase-out at $59,000.

Taxpayers are allowed to contribute up to $5000 to a deductible IRA, and up to $6000 for those 50 and older.

And remember, the IRA contribution not only decreases your federal taxable income, it also decreases your state taxable income. Double bonus!

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