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Can I Still Save On My 2020 Taxes

Hi I'm Laura Rotter of True Abundance Advisors and I'm here to give you some tax tips for 2020. if you're like most people you wait until the last minute to file your taxes and so you're thinking I blew it I lost my chance to lower my taxes for the tax year that passed. take a deep breath there are still some things you can do to lower the tax.  

You can contribute to a traditional ira until April 15th of course check that you have not exceeded the income limits but if you haven't you can deduct up to six thousand dollars directly from your taxable income by putting money in a traditional ira. If you're 50 or older you can increase that by another thousand to seven thousand dollars. Now you might be self-employed in which case you can put even more money away depending on the income you've generated in your business by setting up either a sep ira or a solo 401k and you have the ability to do this depending on what kind of entity you have perhaps up until October 15th. If you filed an extension on your taxes so you can put away up to 57 000 and if you're over 50 perhaps even more depending on the vehicle or your business entity by setting up one of those tax deferred accounts to shelter some of your self-employment income. If you have a high deductible health care plan you can put a health savings account in place and you could fund that up until April 15th.

Now all of this is not going to help you save money if you have a tax bill that is ticking ticking ticking, accumulating interest daily that you haven't paid. So even if you defer and extend your tax filing until October 15th,if you actually owe taxes please be sure to pay those by April 15th. If you owe any taxes from previous years make sure to be paying those and not paying the interest that's accumulating that's a huge way to save on your taxes. Ihope these tips are helpful if you'd like questions answered about your specific situation please do not hesitate to reach out, send me an email or give me a phone call I'm looking forward to answering your questions thank you.