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Always pay any STATE estimated payment in December even though it s due in Jan so that you can deduct the amount in the current year. If you pay it in January ….when it’s due you must wait a whole year to deduct it on the federal return!!!!
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► Tax Saving Techniques
Some generally recognized financial planning tools that may help you reduce your tax bill.
► Deducting Mortgage Interest
If you own a home, you can claim a deduction for the interest paid. To be deductible, the interest you pay must be on a loan secured by your main home or a second home. The loan can be a first or second mortgage, a home improvement loan, or a home equity loan.
► Capital Gains and Losses
Almost everything you own and use for personal purposes, pleasure or investment is a capital asset. The IRS says when you sell a capital asset, such as stocks, the difference between the amount you sell it for and your basis, which is usually what you paid for it, is a capital gain or a capital loss. While you must report all capital gains, you may deduct only your capital losses on investment property, not personal property.
► Coverdell Savings Accounts
A Coverdell Education Savings Account (ESA) is a savings account created as an incentive to help parents and students save for education expenses.
► IRA Contributions
If you haven’t contributed funds to an Individual Retirement Arrangement (IRA) for last tax year, or if you’ve put in less than the maximum allowed, you still have time to do so. You can contribute to either a traditional or Roth IRA until the April 15 due date for filing your tax return for last year, not including extensions.
► ROTH IRA Contributions

IRA contribution limits

Individuals can contribute up to the lesser of 100% of taxable compensation or the applicable limit below.

If you have more than one IRA (for example, a traditional IRA and a Roth IRA, your total combined contribution to all your accounts can’t exceed the above limits.

To make an IRA contribution, you have to be eligible, which means you must either:

• Have taxable compensation, or
• Have a spouse with taxable compensation and file a joint tax return.

In addition, if your income exceeds certain levels, the maximum Roth IRA contribution may be lower than the above amounts, or you may not be able to contribute to a Roth IRA at all. It’s all based on your modified adjusted gross income, or MAGI. If your MAGI falls in the “partial” range, your tax advisor can help determine your exact IRA contribution maximum.

Roth IRA MAGI Limits

20242023

* If you file separately and didn’t live with your spouse at any time during the year, your deduction is determined under the “Single” filing status