What can be done at the last minute if you have not filed a tax return

The dedline filing of tax returns for 2017 will come just a week later, but you still have a chance to save up to 2750 dollars in taxes over the past year.

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All you have to do is make a deposit to an individual retirement account (IRA) before the deadline for filing tax returns, which fell on 17 April this year, will reduce your taxable income and, therefore, reduce the amount you owe taxes for 2017 year, writes Time.

Please note that this only applies to traditional IRA accounts, since the Roth's IRA is replenished after taxes, and you cannot deduct this money from taxable income.

Deadline for contribution to the IRA

You have time before 17 April 2018 of the year to make a contribution to the IRA and be able to deduct this money from taxable income. Be sure to tell your account administrator that the money you are investing should be taken into account for 2017, not 2018 a year.

If you have already submitted your 2017 declaration for the year, but have not deposited funds into your IRA account, you can file a revised tax return after the installment and return your money.

Limit the amount of contributions to an IRA account

The limit on contributions to an IRA account in 2017 is 5 500 dollars, although if you are 50 or older, the limit is 6 500 dollars. The tax breaks that you get from your contribution depend on your income and your retirement plan.

If you have a retirement plan, you are younger than 50 years, and your gross income is up to 62 000 dollars, you can deduct from the taxable income the full amount of contributions by reducing your federal taxes by about 1 375 dollars. If you are married, you are younger than 50 years, and the threshold of your total income is 99 000 dollars, then you can deduct 2 750 dollars of taxes for two people.

A partial deduction is also possible, which is available to people with high incomes and those who do not have a pension plan.

Limits and deadlines for contributions to SEP-IRA

Self-employed people usually have an SEP-IRA retirement account, and a contribution to it can also reduce your taxes.

Like a traditional IRA account, an SEP-IRA allows you to deduct a contribution from taxable income, but there are higher limits. You can deposit up to 25% of your annual salary on your retirement account or up to 54 000 dollars per 2017 a year.

The deadlines for the contribution to the SEP-IRA are basically the same as for the regular IRA account, that is, the contribution must be made before 17 April 2018. But there is one key difference: if you are applying to extend the deadline for filing a tax return, then you will have time to make a contribution before the expiration of the extension, that is, before October 15 2018.

Tax credit

Another way to put money into your IRA account and reduce taxes: a tax credit, which is available to many low-income taxpayers. Apply for it and you will receive double tax benefits.

A retirement savings loan allows you to deduct up to 2 000 dollars from your tax bill if you are single, and up to 4 000 dollars if you are married.

The maximum discount is available to single people with a gross income of 19 000 dollars and couples with income up to 38 000 dollars.

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