Its that time of the year to start thinking about taxes. When life was easy we were generally done by now but with a more diverse portfolio and a small business it takes a little longer to get ready. I’m not just talking about the paper work even though that is a large part of it. I’m talking about getting ready to let go of some money to great old Uncle Sam. We tend to owe a little every year as contracting full time and small business part time can cause some fluctuation in income. The end result is generally owing the old guy a little bit. So this year as we have been working the numbers we realized something that may end up saving us a lot on taxes.We had not contributed anything to my wife’s IRA but the good news is that we still can until April 18th per the IRS. By contributing $3000 to her IRA, we will reduce a tax bill of $950 to $68. Tell me that’s not good news?
So if you have some extra cash in your savings make sure that you have maxed out your IRAs to keep a little more in your pocket and a little less out of the greasy hands of Great old Uncle Sam:-) I think he has enough anyways…..
Below is a few Gov websites with information on IRAs