2. Reduce Your Tax Burden Using an IRA Contribution Traditional IRA contributions of up to $5,500 (or $6,500 if you’re older than 50) may be tax deductible, depending on your income and other factors, according to the American Institute of CPAs (AICPA). Even if you didn’t contribute during the 2013 calendar year, there’s still time. Take advantage of this opportunity to grow your retirement savings and potentially reduce your tax burden by making a last-minute IRA contribution prior to April 15, the AICPA says.
3. Important Tax Code Changes to Know Recent additions to the tax code affect many Americans. According to the AICPA, some of these changes include:
5. File an Extension If you absolutely cannot file your taxes by April 15, it’s critical that you file an extension by that date in order to avoid incurring possible penalties and fees. An automatic six-month extension is available via Free File or tax form 4868. Remember, however, that interest or penalties may continue accruing on any taxes owed, so get to work on that payment plan ASAP to minimize the expense.
Please note that Allstate Life Insurance Company or its agents and representatives cannot give legal or tax advice. The brief discussion of taxes on this page may not be complete or current. The laws and regulations are complex and subject to change. For complete details consult your attorney or tax advisor.