Tax Tips
DELMARVA- We’re coming up on tax season and local experts have some tips on ways to help your finances before the end of the year, and WMDT has the deductible details.
401K
401K’s, IRA’s and HSA’s, are all avenues that can be maximized come tax time. That’s according to Mark Welsh, partner with UHY, LLP., a tax office in Salisbury. “If they have a 401K plan, they ought to be trying to maximize that as much as possible. So, if you’re single, for example, you could put away $23,000. If you’re over 50 you can actually put away $30,500.”
IRA
The key is knowing just how much you can put away each year and contributing the maximum amount before December 31st. Welsh says most employers offer a 401K, and an Individual Retirement Arrangement or IRA is another way to save. “Let’s just say that you’ve maximized your 401K plan, and you want to put away more. You can actually, there’s potential out there for you to put away another $7000 if you’re under 50. Or if you’re over 50 you could put away another $8,000. So that’s on top of your 401K plan.”
HSA
Also making sure you’re utilizing your HSA to the fullest extent before the end of the year. The health savings account allows people to put away tax-free money in case of a medical emergency, Welsh adds. “If you’re an individual, you could put away $4,150. If you’re a family, it’s $8300. What I would suggest is that you look at those accounts and see if you’re not maximizing them, you try to maximize them. You don’t lose it, it carries over. ”
IRS
Welsh goes on to say charitable deductions also help with maximizing your returns, and by checking all the boxes before New Year’s, you can be sure you’re getting the best return on your taxes next year.
If you would like to visit UHY, LLP they’re located on 955 Mount Herman Road, Salisbury, MD 21804 or feel free to visit their website. For more detailed information concerning your deductions, visit www.irs.gov.