• Business owners can sock away a maximum of $54,000 in a SEP-IRA or $12,500 in a SIMPLE IRA.
• If you’re 70½ and don’t need your required minimum distribution, give it to charity.
If you want to save money, dust off your 2016 tax return.
Back in April, after your preparer filed your Form 1040, you probably took your refund or paid your bill and stashed the paperwork in a file somewhere.
That’s a mistake, according to Andrew Watts, director, wealth management at HD Vest Financial Services.
“The 1040 is like an X-ray into the client’s financial health that invites a deeper conversation around how to improve their financial future,” Watts said.
These five portions of the form will help you save on taxes, put away even more money for retirement and ensure that your insurance coverage is up to par.
Know your dependents
Line 6C is where you list your dependents. Most of the time, it’s your kids, but don’t forget that adults can count, too.
A qualifying relative under the IRS definition must meet several tests, including the requirement that they are a member of your household or your immediate family, and their gross income for the year must be below $4,050. You must provide more than half of that person’s support.
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