03/24/2022
The tax return deadline for tax year 2021 is less than a month away. Is there a way to reduce your tax liability at this last minute? Absolutely! Keep reading to see how you can use these tax advantaged accounts to lower your tax bill this year.
HSA is a dedicated savings account for qualified medical expenses. You’re able to accrue interest tax free and as long as it’s being used for eligible medical expenses you’re able to with-draw the funds tax free as well.
Unspent dollars are rolled over each year making it a good retirement savings vehicle. In order to qualify for an HSA you will need to enroll in a high-deductible health insurance plan (HDHP) -usually one with a deductible of at least $1,400 for individuals and $2,800 for family.
Maximum Contribution (Single) $3,600
Maximum Contribution (MFJ) $7,200
Catch up Contribution - age 55 & over $1,000
You have until April 15, 2022 to increase your contribution for tax year 2021 and receive a deduction on your tax return.
Traditional IRA is a retirement vehicle that can provide tax advantages. Depending on your income and filing status your contributions may be fully or partially deductible. You’re generally able to defer taxes on these accounts until you take a distribution.
Maximum Contribution (Single) $6,000
Maximum Contribution (MFJ) $12,000
Catch up Contribution - age 50 & over $1,000
If you’re below the maximum contribution you’re still able to receive a deduction for 2021 if you make the adjustment by April 15, 2022.
401(K) Plan is a retirement savings and investing plan offered by employers. A 401(K) plan is attractive because the annual contribution limit is significantly higher than an IRA and therefore allows you a larger deduction for taxes.
If you have not maxed out your 401(K) contribution 2021 and have a large tax liability you’re still able to make the adjustment and get a deduction up to the following limits. You have until April 15, 2022 to make this change.
Maximum contribution $19,500
Catch up contribution for age 50 & over $6,500
Solo 401(K) for Self-Employed individuals: $58,000
Solo 401K plans can be implemented only by self-employed persons or small business owners who have no other full-time workers.
If you’re ready to get your taxes filed for 2021 please go ahead and book a call at the link below.
https://go.oncehub.com/AngelaMedley
