Three Tax Tips for Last-Minute Filers

The April 15 tax deadline is fast approaching and there are things that can save you money if you act fast! To save money on your taxes while simultaneously saving money, check out our three tips below and see if they’re a fit for you:

1. Contribute to an IRA

Contributing to an individual retirement account ensures you receive a tax deduction. For those who don’t participate in a plan provided by your workplace or 401K, you can contribute an amount of $5,500 (or $6,500 if you’re 50 or older) to an IRA to qualify for a significant tax deduction. No IRA? Try putting money aside into a health savings account to get a tax deduction on those contributions as well.

2. Maximize the tax deductions from your side hustle

Do you make additional income on the side of your “day job?” If so, there are potential tax deductions you can claim before the April 15 deadline. Do you drive for a rideshare service or list your home on Airbnb? Then you’re an independent contractor and you should  think about the expenses incurred that can potentially be written off – office supplies, meals, equipment, etc. Keep in mind you’ll need to fill out a separate tax form called a “Schedule C.”

3. Keep track of dependent care costs

Qualifying expenses for childcare such as summer camps and daycare can fall under the childcare tax credit where you can claim up to 35% of expenses via a tax credit. A credit is dollar for dollar, and often better than a deduction.