Tax day is tomorrow, April 15th so whether procrastination is your issue or you’re just not organized this year, we have some last minute advice from the experts. Clint Campbell with UFCU joined us in the studio to tell us more. You can consider making a deductible IRA contribution for 2014, which you can do on or before April 15th. For 2014, You can contribute up to $5,500 ($6,500 for those 50 and older) per individual or $11,000 for a married couple. A non-working spouse may still be eligible to make a full contribution. An IRA contribution may also allow you to claim the Retirement Savings Contribution Credit, also known simply as the Saver’s credit. The Saver’s credit can be as much as $2,000 for a couple or $1,000 for an individual, income limits apply to be eligible for this credit.
Self-employed individuals or independent contractors (those not covered by an employer plan), may want to consider a SEP IRA. SEP IRAs are not complicated to set up and allow a tax deductible contribution up to 25% of adjusted gross income. Filing an extension can allow extra time to fund the SEP IRA for 2014. It’s fairly simple to file an extension and many online tax preparation providers will allow you to file an extension for free. An extension gives you an additional 6 months to file your taxes, however it does not mean that you have extra time to pay your taxes. You have to pay at least 90% of your 2014 tax bill by April 15, 2015 in order to avoid penalties. If you don’t have the funds to pay your tax bill in full by April 15, you may want to consider entering into an installment payment plan with the IRS. There’s a list of free tax preparation options on the “Free File” section of the IRS website. It may be a good idea to see if any of these options will meet your needs.
For more financial advice, UFCU hosts seminars all the time on a variety of financial topics, ranging from investments to buying your first home. For more information on how you can protect yourself against credit card fraud or theft, visit UFCU.com or give them a call at (512) 467-8080.
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