The tax deadline is just a few weeks away on Monday, April 18. If you haven’t filed yet, there are some changes and deadlines you should be aware of that could affect your taxes.
Here are some factors to keep in mind when you’re ready to file:
Traditional IRA Contribution Deadline: Tax Tips for 2022
Contributions to a traditional IRA are made with pre-tax dollars, meaning they help reduce your taxable income. You have until April 18, 2022, to make your contributions for the 2021 tax year.
The contribution limit is $6,000 if you’re 50 or under, or $7,000 if you’re over 50.
Roth IRA Contribution Deadline
While contributing to your Roth IRA won’t reduce your taxable income, it’s still a smart option because it’s funded with after-tax dollars (meaning you won’t pay taxes on the contributions.)
If you want to max out your Roth IRA for the 2021 year, you still have until April 18th to do so. For 2021, you can contribute up to $6,000 to your Roth if you’re under 50, or $7,000 if you’re over 50.
401k Contributions Increase
Contributing to your 401k is another way to reduce your taxable income. The deadline for these contributions is typically December 31, but if you find that your tax bill is higher than you were expecting this year, you might consider contributing more to your 401(k) next year.
Keep in mind that the contribution limit for a 401(k) has gone up from $19,500 in 2021 to $20,500 in 2022.
HSA Contributions Changes
Reducing taxable income is just one of many beneficial reasons to contribute to an HSA, and fortunately, you still have until tax day 2022 to do so.
Note that in 2021, the contribution limits were $3,600 for individuals, or $7,200 for a family. Those limits are increasing in 2022 – $3,650 for an individual, or $7,300 for a family.
If you gave to charity in 2021, don’t forget to include that deduction on your taxes. For non-itemizers, there are deductions up to $600 for qualified charitable donations. Read more about that here.
You can also reduce your taxable income through qualified charitable distributions, or QCDs. These are distributions made directly from your IRA to a qualified charity. As long as you follow the rules for QCDs, these donations can be counted toward your annual RMD total. Read more about QCDs here.
Additional Tax Resources
If you need help navigating this tax season, check out some of my other resources:
Do you need help planning for your financial future? Contact me today to set up a meeting to talk about your goals.