Happy New Year, everyone! From everyone at your favorite BBB®, we wish you a great, wonderful New Year! And if saving money is on your mind, the IRS has a few tips that could boost your tax return:
Save for retirement
If you open an IRA, 401k or a similar retirement account before April 15, 2018, you may qualify for the Saver’s Credit, which is worth $1000 for individual filers and $2000 for married couples who decide to file jointly. To claim it, use the IRS form 8880, or talk to a local accredited tax preparer about your eligibility for the credit when filing your taxes.
Take some classes
If you’ve been thinking about taking night classes but couldn’t figure out the financials, you can use The Lifetime Learning Credit (LLC). This credit is nonrefundable, which means it’s limited to your tax liability (for example, if you qualified for the full $2000 LLC but your tax liability is only $1000 for the year, the credit you will receive will be $1000).
Keep track of your personal finance
Another good idea would be to adjust your W-4 at the beginning of the year. This form tells your employer how much money you would like to hold out of each paycheck for tax purposes. The more money you put aside to cover your taxes, the better the chances to receive a big tax return in the spring. For more information on how to adjust your W-4, click here.
And remember to keep reading The Beacon and follow your favorite BBB on social media! Thank you for being our fan for so many years and Happy New Year!