What you say? I know I’m seriously procrastinating filing my taxes this year because I actually owe the IRS a little money so I’m going to give it to them at the last possible minute. My taxes are 95% done I just need to now e-file them and send along my money. I had my tax withholding nearly spot on with the exception of my side income which grew a little more than I had planned. So for me this is a calculated move but I know there are a lot of you out there who haven’t even started. Not to worry you still have plenty of time, just looks to be a pretty lame weekend ahead though to get there.
You might appreciate the fact that you are not alone. Myself I live in the 6th most tax procrastination prone city in the United States. Not sure what that says about us but interesting nonetheless. Want to see where your city stands check out TurboTax – Top 10 Procrastinating Cities.
There’s Still Time to Get some Deductions!
You still have time up until April 15th to contribute to an IRA and get an additional deduction. This is what we call a Win-Win because you can kick in money for your retirement and see an immediate impact on your tax burden.
IRA Contribution Limits
Direct from the IRS:
If you are under 50 years of age at the end of 2009: The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $5,000 or the amount of your taxable compensation for 2009. This limit can be split between a traditional IRA and a Roth IRA but the combined limit is $5,000.The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income.
If you are 50 years of age or older before 2010: The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $6,000 or the amount of your taxable compensation for 2009. This limit can be split between a traditional IRA and a Roth IRA but the combined limit is $6,000. The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income.
Avoid the Post Office this Year
If you use something like TurboTax or H&R Block’s software you don’t have to worry about getting your return in on the 15th with every other procrastinator in your area, you can file through their software up to the last minute. Who really wants to be waiting in line at the Post Office on the 15th. And you also want to be sure that your post office would be open late anyways because most Post Offices will now only be open regular hours so no midnight runs this year.
Good luck and let us know how you’re doing with your tax filing.
(Photo Courtesy TheeErin )