The tax season is On, and most of the people would be looking for various tax savings methods or tweaks. You might be also reaching out to tax consultants for filing your taxes online. Nevertheless, you can do taxes online, if you know tax saving tips. We bring to you the best five tax preparation tips to save some extra mile on your taxes.
4Contributing to IRA
The annual contribution limit for 2019, 2020, and 2021 is $6,000, or $7,000 if you’re age 50 or older. The annual contribution limit for 2015, 2016, 2017 and 2018 is $5,500, or $6,500 if you’re age 50 or older. Your Roth IRA contributions may also be limited based on your filing status and income.
Do not use Form 8606, Nondeductible IRAs PDF, Nondeductible IRAs, to report nondeductible Roth IRA contributions. However, you should use Form 8606 to report amounts that you converted from a traditional IRA, a SEP, or Simple IRA to a Roth IRA.
[Source : irs.gov]