Advice for Lowering your Payment to the IRS before the Filing Deadline with The Romine Group

As tax season comes to a close, many individuals find themselves facing a balance due on their tax returns. However, there are proactive steps you can take to lower that amount before the filing deadline. 

Contributing to Your IRA

One effective way to reduce your tax liability is to contribute to your Individual Retirement Account (IRA). If you still need to max out your IRA contributions for the previous tax year, you can do so until April 15th. For the tax year 2023, the contribution limit is $6,500 for individuals under 50 and $7,500 for those over 50. 

Maxing Out Your HSA Contributions

Another avenue to explore is maximizing your contributions to a Health Savings Account (HSA). HSAs offer tax advantages, and contributing to them can help lower your taxable income. The contribution limits for 2023 are $3,850 for individuals and $7,750 for families. Additionally, individuals over 55 can make an extra catch-up contribution of $1,000.

Utilizing the 529 Plan

In Indiana, recent legislation has made it easier for taxpayers to benefit from contributions to a 529 plan. Unlike previous years, in which contributions had to be made by December 31st, you can now contribute to a 529 plan until the due date of your tax return. This change provides more flexibility for families to save for education expenses while also enjoying tax credits.

Adjusting Your W-4 Withholding

If you find yourself owing taxes this year, it’s essential to review your W-4 withholding with your employer. Being under-withheld can lead to unexpected tax bills. Take the opportunity now to adjust your withholding to ensure you’re on track for the remainder of the year.

Get in Touch with Us

At the Romine Group CPA Firm, we understand the intricacies of tax planning and can help you navigate these strategies effectively. Whether you have questions about IRA contributions, HSA contributions, or any other tax-related matter, we’re here to assist you. Feel free to reach out to us via email or phone or stop by our office.

Remember, “There are only two things certain in life: death and taxes, and we do taxes.”

While we can’t avoid taxes altogether, we can certainly take steps to minimize their impact. By taking advantage of these tax-saving opportunities before the filing deadline, you can lower your tax bill and keep more money in your pocket. 

Don’t hesitate to contact us for personalized assistance with your tax planning needs.