Tags: April | deduction | tax | extension

WSJ: 4 Last-Minute Tax Tips

By    |   Wednesday, 02 April 2014 02:40 PM

With the April 15 tax deadline closing in, The Wall Street Journal offers several tips to save you money, time and peace of mind.

• You can get a six-month extension on the deadline, until Oct. 15, if you file Form 4868 to the IRS. You can file it electronically or by regular mail. But if you opt for the extension, remember that you still must pay the IRS at least 90 percent of your tax obligation by April 15 to avoid penalties.

• There are several ways you can still cut your 2013 tax bill. You have until April 15 to make a tax-deductible contribution to your IRA. If you're younger than 50, you can put up to $5,500 in your IRA, and the maximum is $6,500 if you're 50 or older.

Editor's Note:
Secret Wall Street Calendar Uses Strange ‘Crash Alert System,’ Gets 18.79% Annual Returns

• If you already had a Health Savings Account set up Dec. 31, you can make a tax-deductible contribution of up to $3,250 by April 15 if you're younger than 55 and $4,250 if you're at least 55.

• You can file your return electronically and have your payment automatically withdrawn from your bank account.

Meanwhile, wealthy households should prepare themselves for a higher tax bill this year.

"Between the increased tax brackets that went into effect in 2013, and the new 3.8 percent Medicare surtax on net investment income, many upper-income taxpayers are seeing a significant bump in their taxes," Patricia Bojanic, a tax partner at Gordon Advisors in Troy, Mich., tells the Detroit Free Press.

Some wealthy households may face at least a 24 percent increase in taxes on their investment income, she says.

Editor's Note: Secret Wall Street Calendar Uses Strange ‘Crash Alert System,’ Gets 18.79% Annual Returns

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With the April 15 tax deadline closing in, The Wall Street Journal offers several tips to save you money, time and peace of mind.
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Wednesday, 02 April 2014 02:40 PM
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