Just a quick add-on to last week’s post, here are a few more quick tips to keep in mind during tax season…
- Don’t miss out on the Retirement Savings Contribution Credit (or Saver’s Credit). If you’re single and make less than about $30,000/yr, or married w/ a combined income of less than $60,000/yr, you may be eligible for this credit. If you contribute to an employer-based retirement plan, or to an individual retirement plan such as a Roth IRA or Traditional IRA, you can receive a tax credit for up to 50% of the amount you contribute to the account. It’s the IRS giving you money for giving yourself money. And if your employer does matching contributions, you can really leverage your contributions. More information available from the IRS.
- If you want to check the status of your refund after you’ve filed your return, go to the source: The IRS. You can use the “Where’s My Refund?” tool from the IRS to check on the status of your return after it’s been transmitted to them by your tax software or tax preparer. (Also available in Spanish.) This will be the most up-to-date information available about the status of your refund.
- Use the best filing status. It’s very common for newly married couples to want to file separately at first since they don’t feel like they’ve “merged” their finances. In nearly all cases, using the Separate filing status will result in a worse result. There are a few exceptions to that, but in general avoiding the Married Filing Separate status will save you a lot of money.
That’s all for this week. If I run across more common errors, I’ll post them here.