That Time of Year Again

It's tax season and it isn't too late to make some last minute deductions and try to keep as much of your hard earned money as you can.  Here are a few pointers that may help you this year, as well as a few that will save you money next year as well.

1.  You have until April 15 to make contributions to your IRA or other tax-qualified retirement plan. Remember that you can deduct contributions to a traditional IRA, but not a Roth.  

2.  Keeping your refund closer to zero is better than getting back a large refund.  If you are getting back a lot of money, remember that you loaned that money to the government free of charge and they are just paying it back.  

3.  If you are a business owner, self-employed or an independent contractor, you should seriously consider a SEP-IRA or a Simple IRA.  The contribution limits are much higher and can save you money on your business' tax bill.  

4.  Make a habit of keeping track of all of your deductions throughout the year.  This will save you a lot of time.

5.  A tax preparation company can be expensive.  If you have 1 employer and you don't itemize, an EZ form can be done on your own.  On the other hand, if  you have questions throughout the year, maybe an accountant is worth the money.  

The question we ask our clients is this:  How efficiently does the government spend your money and can you do better?