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Need Tax Deduction? Check Out Traditional IRA
Do you owe taxes this year? Looking to reduce your tax bill? Check out a Traditional IRA. It’s one of the few deductions that can be taken AFTER the tax year ends. In practical terms, taxpayers can contribute to a Traditional IRA as late as April 15, 2019 for 2018 Tax Year.
Contributions provide a much needed tax deduction on Schedule 1 (lowering taxable income and tax bill).
AND
If taxable income is within the limits may also provide a tax credit as well (See instructions for Saver’s Credit- IRS Form 8880).
How much can I contribute?
Depends on Age (under age 70; 2022 update no age limit)
Filing Status
Adjusted Gross Income (AGI) (must have wages or self employment income for taxpayer or spouse)
and
Whether covered by a retirement plan at work.
For 2018 tax year, taxpayers under age 50 can contribute up to $5,500. If over age 50 can contribute up to $6,500 (2022 update 6,000 under age 50, 7,000 over age 50)
For more information see IRS Tax Topic https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
Or IRS Publication 590A