Tax Deadline Approaches

Just over three weeks until April 18th when the tax deadline approaches. The last day to ensure your taxes are in by April 18th is Friday, April 7th. Anything that arrives after that date will be put on extension. I will try to get out as many as possible, but if I receive one hundred tax returns on April 17th, obviously, I could not get all those out the door and filed. (I am good, but not that good.)

 

If you want to contribute to an IRA or SEP, the deadline for contributions is April 1st. So if you think you might need to contribute to reduce your tax liability, don't forget the deadline. Remember, only traditional IRA's are tax deductible. Roth's are not. If you have a retirement plan at work, you are prohibited from deducting an IRA - but not contributing. You can contribute to a Roth if your income levels allow.

 

If you are 70 1/2, you must take Required Minimum Distributions by the end of the year. Failure to do so results in a 50% penalty. I recommend having the RMD setup automatically where it is sent to you each year at the same time. Therefore, you never forget. You can have the RMD sent directly to the IRS approved charity of your choice and you don't have to claim it as income. This is a great deal for people who normally give to charities each year. Just let the charity know you are giving a one time gift rather than monthly or other timely gifts so the charity can know who to budget for the year. But remember, your kids and grandkids are not an IRS approved charity...so they do not count.

 

The first quarterly installment is due on April 18th as well as any balance due on your taxes. You can file for an extension, but that is not an extension to pay - only to file...so make sure you have your payment in before the deadline.

 

Don't delay until the last minute for your tax returns. Get them in as soon as possible.

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