Helpful Tips for the Coming Tax Season

As the holiday season begins and the year comes to an end, here are some things to keep in mind for your federal tax filings:

  1.  Maximize your tax savings by contributing to your retirement account.  Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. For most people, this means that contributions for 2012 must be made by April 15, 2013.    For additional information, see:,-Employee/Retirement-Topics-IRA-Contribution-Limits. 

2.  Have you made a substantial gift?  If you gave money or property to someone as a gift, you may owe federal gift tax. Many gifts are not subject to the gift tax, but the IRS offers the following eight tips about gifts and the gift tax:

3. Did you know that taxpayers in your area can receive up to $5,891 when filling their tax returns and claiming the Earned Income Tax Credit (EITC)?  Consider the financial boost EITC provides for working people in a recovering economy and the impact of that influx of cash to the local economy.  The amazing part is that there are potentially eligible recipients who miss this credit because they don’t file a Federal tax return!

EITC is a refundable federal income tax credit for low to moderate income workers. When EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit. To qualify, taxpayers must meet certain requirements and file a tax return, even if they owe no tax or do not have a filing requirement.

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