Tax Tips: Everything You Need to File in 2018 & 2019!

TL;DR

Learn valuable tax-saving tips for retirement contributions, deductions, extensions, and more.

Transcript

Chris Hill: Hey, everyone! Thanks for watching! We're coming to you from Fool Global Headquarters in Alexandria, Virginia. I'm Chris Hill, joined, thankfully, by the tax experts Robert Brokamp and Megan Brinsfield. Thanks for being here! Robert Brokamp: Our pleasure! Hill: We're going to take your questions in just a moment, so go ahead and get tho... Read More

Key Insights

• 🚕 Retirement plan contributions like IRA and Roth IRA can provide tax benefits based on income levels and future tax brackets.
• 😵‍💫 SEP IRA offers benefits for self-employed individuals with retroactive contributions and higher deduction limits than traditional IRAs.
• 🚕 Itemized deductions for charitable donations and expenses can help maximize tax deductions, especially for those who can exceed standard deduction thresholds.
• 😘 Utilizing tools like VITA and IRS Free File can provide free tax preparation assistance for low to moderate-income individuals.
• 🚕 Consider consulting tax professionals for complex tax situations like foreign income, rental properties, and business ownership in foreign countries.
• 🌸 Taxpayers can benefit from understanding tax nuances like carry-forward losses, 529 account contributions, and cost basis reporting for brokerage accounts.
• 🚕 Planning ahead for tax obligations, whether through estimated quarterly payments or retirement account contributions, can help reduce tax burdens for future years.

Questions & Answers

Q: What are some ways individuals can save on taxes through retirement contributions?

One effective strategy is making IRA contributions, especially considering traditional and Roth IRAs based on income levels and future tax planning.

Q: How can self-employed individuals benefit from SEP IRAs in terms of tax deductions?

Self-employed individuals can leverage SEP IRAs for retroactive contributions and deductions up to $55,000, offering higher contribution limits compared to traditional IRAs.

Q: What tax deductions can be explored through itemized deductions like charity donations and expenses?

Individuals can deduct expenses for charitable donations, including items donated to organizations, as well as mileage costs for driving for charitable activities.

Q: How can taxpayers find economical tax preparation options to save on taxes?

Options like Volunteer Income Tax Assistance and IRS Free File provide cost-effective ways to prepare and file taxes, while consulting professionals can ensure accurate planning and deductions.

Summary & Key Takeaways

• Explore strategies for maximizing tax savings through retirement contributions like IRA and Roth IRA.

• Understand the benefits of SEP IRA for self-employed individuals and the potential deductions for charitable contributions.

• Discover ways to optimize tax planning by consulting tax professionals and utilizing online tools and resources.