By Rosalyn Partin, Manchester H&R Block
Contributions to retirement accounts can be a great way to reduce your taxable income and thereby reduce your tax. Contributions to Individual Retirement Accounts for 2021 can be made up until the filing deadline of April 18, 2022. The 2021 contribution limit for IRAs is $6,000 per taxpayer with an additional $1,000 allowed for taxpayers age 50 and over. You can claim an IRA contribution deduction even if you use the standard deduction.
Deductible contributions to a Traditional IRA can not only reduce your taxable income and save you tax, but in some cases the contribution can also increase tax credits that are available on the return making an even bigger impact.
IRA deductions may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels.
Consult your tax preparer if you are interested in saving tax and increasing your refund (or reducing your balance due) by making an IRA contribution. Tax professionals can show you the difference that making tax deductible retirement contributions will have on your tax return. Be informed about your tax situation and possible tax savings moves you can still take for 2021. See an H&R Block tax professional.
If you have questions about retirement plan contributions or other tax-saving moves, please call your local H&R Block office. In Manchester TN call 931-728-9462. H&R Block Has Your Back!
