At this time, everybody is scrambling to get their taxes in on time. The tax deadline is one of the most stressful periods in the United States of America. It is at this time that people find out if they’re getting any money back or if they’re going to owe the government a large chunk of money.
However the US Money Reserve has recently written an article that lets the reader know 10 easy ways that they can decrease their tax cost this year. Read more: US Money Reserve | Facebook and US Money Researve | Instagram
They begin by explaining that it is essential that you have multiple retirement accounts going on at one time. It is a little known fact that there is no mandate on how many retirement accounts somebody’s allowed to have. Unfortunately, many people do not know this and only use one retirement account for their money. The US Money Reserve says that you are losing a lot of tax benefits by only having one retirement account.
They go on to explain that you would be wise to open up another IRA account before the April 17 deadline. You then must specify that any contribution going to that will be for the 2017 year. This means that you can open the account now in 2018 and yet still receive the award for 2017.
The US Money Reserve then goes on to explain the you are entitled to give up to $5500 to each of these IRAs. Each amount you give decreases the amount of taxable income that you have. You can even open up an IRA for nonworking spouse so that they can be protected in their later years.
The US Reserve also goes on to explain that you are able to apply for savers credit that will come to you every single year. This means that up to 50% of your investments in your IRAs can come back to you as credit.
To put this in perspective, even if you only gave $5500 to one IRA that means that $2250 would come back to you as credit. This means you keep the $5500 and gained $2250. It is like they are paying you to get ready for retirement.
The US Money Reserve then ends by telling you the you should use your tax return to fund your IRA. If the government knows this it grants additional credit to pay any monetary amount owed.
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