4th Quarter 2018

Tax-Planning Tips to Help You Save

It's important to know about the major tax-law changes that affect some of the deductions you can take for 2018. The standard deduction has nearly doubled, so fewer people will be itemizing their deductions, and some tax breaks — such as the deduction for state and local taxes — are now limited. Here are a few ways you can still save on 2018 taxes.

You have until April 15, 2019, to make IRA contributions for 2018. You can contribute up to $5,500 for the year, plus an extra $1,000 if you’re age 50 or older. In some states, you also have until April 15, 2019, to make a tax-deductible contribution to a 529 college-savings plan for 2018. See www.collegesavings.org for each state’s tax rules.

Take advantage of frequently overlooked tax breaks, such as the American Opportunity Credit for college tuition or the lifetime learning credit for continuing education. See Publication 970 at www.irs.gov for more information. You also could qualify for the retirement saver’s tax credit for contributing to a retirement account if you meet income limits. See www.icmarc.org/saverscredit.

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