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Do You Need a Tax Deduction?
Thursday, 20 February 2014 18:18

"I am proud to be paying taxes in the United States. The only thing is – I could be just as proud for half the money." — Arthur Godfrey, entertainer

If you are preparing to file your taxes, and need to reduce your tax-bill, there are several things I can help you with that can reduce what you owe to Uncle Sam.

Contribute to an Individual Retirement Account. If you're not eligible for a retirement plan at work, contributions are deductible. If you're eligible for a retirement plan at work, tax deductions for contributions may be limited. If you're under age 50, you may contribute 100% of your earned income, up to $5,500. Workers over age 50 may contribute up to $6,500. The deadline for contributions for 2013 are the date you file your income taxes, or April 15th, whichever comes first. Click here for more information and for a free proposal.

Purchase Long Term Care insurance. Premiums are tax deductible up to a limit based on your age when you pay those premiums. For example, people under age 40 may deduct up to $370 per year for premiums paid for Long Term Care insurance. These limits rise with age, topping out at $4,660 for people age 71 and up. Some states have additional tax advantages, including Partnership Programs that can help you avoid confiscation of your money if you receive any form of Medicaid. Click here for more information and for a free quote.

Contribute to your employer sponsored retirement plan. There are several different kinds, depending upon where you work. Contributions to 401(k) plans, 403(b) Tax Sheltered Annuities, SIMPLE IRAs, and 457 Deferred Compensation plans are tax deductible, up to some generous limits for most Americans.

If you have questions, or want to speak to a financial advisor, call me at (800) 680-5596 or click on the Contact link on this page and send me an email.

 

Brent D. Gardner, CLU, ChFC