Last-Minute Tax Reminders

The month of April is loaded with tax-related deadlines. Here are some of the key ones affecting individuals.

Contribute to an IRA. You have until April 15, 2020 to contribute to an IRA for 2019 – and possibly snag a tax deduction that reduces your 2019 taxes. Money you contribute to a traditional IRA is tax deductible as long as you and your spouse are not covered by retirement plans at work. If either of you is covered, your income must be below certain limits for your contributions to be deductible. Contributions to a Roth IRA are never tax deductible.

Contribute to an HSA for 2019. You have until April 15, 2020 to make a tax-deductible contribution to a health savings account (HSA) for 2019. (You must have a high-deductible health plan to contribute to an HSA.)

File your federal tax return. You have until April 15, 2020 to file your federal income tax return for 2019. If you need extra time to file, you can request an automatic six-month extension, which pushes the deadline out to October 15, 2020. Keep in mind that the extension only applies to filing your return – you’re still expected to pay your taxes by April 15, 2020.

Does your child need to file a tax return? They may if they earned money from work or received interest, dividends, or capital gains distributions and their income exceeds certain amounts. However, even if they are not required to file a tax return, it is still a good idea to file one so that any income tax that was withheld from their pay can be refunded to them.

For limit information please click here to view the Davis & Hodgdon Associates Tax Tables brochure for 2019.

With offices in Rutland and Williston, Vermont Copper Leaf Financial develops a customized wealth management plan designed to integrate every aspect of your financial life. Our team of advisors includes Certified Public Accountants. We look through every aspect of your financial plan and identify opportunities to put tax-efficient strategies into play for you - strategies that should be applied today and revisited as your circumstances evolve with the goal of a prosperous tomorrow. Call us today at 802.878.2731 to schedule a strategy session and begin building your road map to financial success.

Article published in March 2020 edition of Eye on Money. If you would like to be added to our mail list please email jennifer@dh-cpa.com.