As the tax filing deadline approaches, you may find yourself asking, “Are there any last-minute tasks to complete prior to filing my taxes?” We have put together a complete checklist to make sure you remember to complete all of the essential items before you file.
Do not forget any last minute 2021 contributions to your Individual Retirement Account (IRA).
Did you know that you can make IRA contributions for the 2021 tax year up until the time you file your taxes? This can be a great last-minute way to boost your retirement savings and potentially receive any desired deductions, depending on your income levels.
Here is a reminder of the IRA contribution limits for 2021:
|Type of IRA||2021 Contribution Limit|
|Traditional or Roth IRA||$6,000 ($7,000 if over 50 years old)|
|SEP IRA||Lesser of 25% compensation or $58,000|
Max out your Health Savings Account (HSA)
Similar to IRA contributions, you have the option to make 2021 HSA contributions up until the time you file your taxes. As a reminder, an HSA allows you to save for future healthcare related expenses. When you withdraw funds from the HSA to pay for qualified expenses, you can collect the funds without paying any taxes. HSAs are considered tax-free investment vehicles.
Here are the HSA contribution limits for 2021:
|Type of HSA Coverage||2021 Contribution Limit|
|Individual Coverage||$3,600 ($4,600 if over 50 years old)|
Do you have all of the necessary documents to start the tax filing process?
Check out this article by Forbes for a checklist of all the documents you may need to start the tax filing process. Please note that these will vary from person to person, depending on the type of job and accounts you have. There are likely several documents listed that will not be relevant to your personal tax filing situation.
Also, please check out our recent blog on Important Information for Filing your 2021 Tax Return. This guide gives logistical tips on where to find some of the documents you need to file.
Our team here at Pearl Planning is always available to assist you and your tax professional in obtaining any information you need to complete your tax return. Please feel free to reach out directly or have your tax professional contact us with questions.
If you are a Pearl Planning client, please plan to upload a copy of your completed tax return to your Right Capital document vault. Once you upload your return, this gives our team an opportunity to incorporate your most recent tax information into your overall financial plan. This can be very useful for current year tax planning and analysis.
We hope to continue to find ways to make your tax season as stress-free as possible. If you or someone you know may benefit from integrating tax planning into your/their overall financial plan, please schedule a call with a member of our team.
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