What Can You Do Today to Qualify for a 2018 Tax Deduction?

March 28, 2019 / by Fortis Family Office Tax Team

The IRS is reminding taxpayers it’s not too late to make a traditional IRA contribution and claim it on your 2018 income tax return.  Contributions must be made by April 15, 2019 and cannot exceed $5,500, unless the taxpayer was 50 years of age at the end of 2018, the contribution limit is $6,500.

What is a Traditional IRA? Contributions you make to a traditional individual retirement account may be fully or partially deductible, depending on your circumstances.

Making yearly contributions to your traditional IRA can not only build up your savings for retirement, but can typically lower your AGI (annual gross income).  You have until each year’s tax filing deadline to make your traditional IRA contributions.  For 2018 that means you can make your contributions from January 1, 2018 until April 15, 2019.

Keep in mind that not all taxpayers can qualify for this deduction.  It is best practice to always consult with your tax preparer and/or an advisor who can help you determine the type of IRA that can be tax beneficial to you.

Sources:

Traditional IRAs

Tax Time Guide

 

 

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