March 12, 2022 - Douglas Myser

IRA contributions up until April 18th. With the Covid pandemic causing upheavals in the life of people all over the globe, and here in the U.S., keeping up on things has become more stressful. With two tax code changes under former President Trump and now President Biden, the need to keep up on some basic tax filing and retirement changes is essential, unless you want to get behind on your taxes, end up with a potential tax debt and an IRS Wage Garnishment. We have dealt with many individuals and business owners over the years, who did not do simple things needed to keep up with changes in the tax code, and fell behind as a result. IRA contributions up until April 18th.

The IRS sent out a bulletin, IR-2022-52, reminding taxpayers that they are able to claim a deduction on their 2021 tax return for contributions to their Individual Retirement Accounts, IRA, made through April 18th, 2022. The IRA is a savings plan that allows employees and the self employed to set aside money for retirement and can have tax advantages. Contributions for 2021 can be made to a traditional or Roth IRA until the filing due date, April 18th, but must be designated for 2021 to the financial institution. Generally, eligible taxpayers can contribute up to $6,000 to a IRA for the tax year 2021. If you are 50 years of age or older, the contribution limit is increased up the a maximum of $7000. If you cannot find the answers you need you can always go to the IRS website at IRS.GOV. Or contact a good Tax Relief Company.

You can also turn for help if you have a tax debt, to a Tax Resolution firm. Information can be found on the IRS Fresh Start Program by clicking on the link. On the IRS website, they have a series called Tax Time Guide, which is designed to give information on filing tax returns. Its not for giving advice on tax options for those with tax debts. If you want that, click on the above link.