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Posted: 3/29/2022 2:09:41 PM EDT
[#1]
Bump for answers
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Posted: 3/29/2022 2:14:37 PM EDT
[#2]
Does your child have a 529 college account that your state gives you a tax credit on?
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Posted: 3/29/2022 2:40:28 PM EDT
[#3]
Not an accountant but I'd play with the software or the forms to see the impact of traditional IRA contributions. Assuming you meet the income thresholds for that a contribution there should lower your AGI. I did IRA contributions in the past to lower our taxable income. It's a win win.
If you can't get comfortable doing it on your own it is likely worth having a CPA or tax preparer confirm my thinking or provide other options. |
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Posted: 3/29/2022 2:52:53 PM EDT
[#4]
Quote HistoryQuoted: Does your child have a 529 college account that your state gives you a tax credit on? "Contributions up to $4,000 per year, per beneficiary, are eligible for a Georgia state income tax deduction for those filing a single return; and $8,000 per year, per beneficiary, for those filling a joint return." so a deduction from the state taxes, but this is federal. |
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Posted: 3/29/2022 3:37:52 PM EDT
[#5]
Not a whole lot you can do now to reduce your last years income. Best option is looking at Deductible IRA contributions or HSA contributions.
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Posted: 3/29/2022 3:40:13 PM EDT
[#6]
This seems like a CPA question.
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Posted: 3/29/2022 3:49:57 PM EDT
[#7]
Unless you already maxed your traditional IRA, a contribution of $240 should do it. The contribution has to be to a traditional IRA, NOT a Roth IRA. You have until April 18th to do it.
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Posted: 3/29/2022 3:56:55 PM EDT
[#8]
Thats about what it would cost to have a CPA do the taxes and those costs should be deductible.
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Posted: 3/29/2022 4:12:04 PM EDT
[#9]
many people may not realize that if they make a cash donation to a qualifying charity, they can get a deduction of up to $300. The deduction lowers both adjusted gross income and taxable income – translating into tax savings for those making donations to qualifying tax-exempt organizations.
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Posted: 3/29/2022 5:30:57 PM EDT
[#10]
Quote HistoryQuoted: many people may not realize that if they make a cash donation to a qualifying charity, they can get a deduction of up to $300. The deduction lowers both adjusted gross income and taxable income – translating into tax savings for those making donations to qualifying tax-exempt organizations. Just to back up what InsaneRusher is saying, this applies even if you take the standard deduction, AND if you are married it can be up to $600. This is a one time thing for 2021. |
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Posted: 3/29/2022 5:36:14 PM EDT
[#11]
Quoted: we just squeaked over one of the thresholds for that child tax credit, so they are wanting to increase our tax payment by that amount to get it back. I obviously would rather not do that. Is it as easy as contributing to my 401/403/or Roth and refiling? This post does not have a lot of information. If I assume you are married, then the child tax credit threshold is $150k. If that is roughly your income level, then look at the traditional IRA limits. If your wife is not covered by a plan at work, then you can put up to $6000 in a traditional IRA for her ($7000 if she was 50 or over at the end of 2021) and take the tax deduction in full if your income is $198k or below, which, at roughly $150k means you get the full deduction, so just stick some money in VTSAX and relax and get the full child tax care credit, too. |
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Posted: 4/1/2022 9:01:36 AM EDT
[#12]
Are you and your wife maxing out your elective deferral to a 401k contribution?
If you want to fix last years taxes, you can contribute to a traditional IRA to reduce your taxable income/AGI, however you also have income limitations on that IRA contribution being deductible. You can read more about that here: https://www.nerdwallet.com/article/investing/can-i-have-a-401k-and-an-ira#:~:text=Short%20answer%3A%20Yes%2C%20you%20can,benefits%20of%20the%20traditional%20IRA. |
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Posted: 4/7/2022 9:33:40 AM EDT
[#13]
Quote HistoryQuoted: many people may not realize that if they make a cash donation to a qualifying charity, they can get a deduction of up to $300. The deduction lowers both adjusted gross income and taxable income translating into tax savings for those making donations to qualifying tax-exempt organizations. |
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Posted: 4/7/2022 4:49:52 PM EDT
[#14]
Quote HistoryQuoted: Would you not have to already be at the max amount or greater than the standard deduction for it to matter? you can do the standard deduction and the charitable contribution write off - its a one off for 2020 and 2021 "individuals can write off up to $300 in cash donations, and up to $600 for married couples filing jointly, made to qualifying charities in 2021, regardless of if they take the standard deduction or itemize their taxes. Typically, only those that do the latter can write off donations, but Covid-era laws changed that for 2020 and 2021." |
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Posted: 4/7/2022 5:49:48 PM EDT
[#15]
Quote HistoryQuoted: you can do the standard deduction and the charitable contribution write off - its a one off for 2020 and 2021 "individuals can write off up to $300 in cash donations, and up to $600 for married couples filing jointly, made to qualifying charities in 2021, regardless of if they take the standard deduction or itemize their taxes. Typically, only those that do the latter can write off donations, but Covid-era laws changed that for 2020 and 2021." Good to know. Consulting with a tax guy in the morning. No more Turbo Tax for us :-/ If I can’t follow the instructions reasonably on tax forms they are too fucking complicated. |
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Posted: 4/7/2022 5:56:36 PM EDT
[#16]
Quote HistoryQuoted: Good to know. Consulting with a tax guy in the morning. No more Turbo Tax for us :-/ If I can’t follow the instructions reasonably on tax forms they are too fucking complicated. Quote HistoryQuoted: Quoted: you can do the standard deduction and the charitable contribution write off - its a one off for 2020 and 2021 "individuals can write off up to $300 in cash donations, and up to $600 for married couples filing jointly, made to qualifying charities in 2021, regardless of if they take the standard deduction or itemize their taxes. Typically, only those that do the latter can write off donations, but Covid-era laws changed that for 2020 and 2021." Good to know. Consulting with a tax guy in the morning. No more Turbo Tax for us :-/ If I can’t follow the instructions reasonably on tax forms they are too fucking complicated. I discovered the above with TurboTax |
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Posted: 4/7/2022 9:23:21 PM EDT
[#17]
Quote HistoryQuoted: Good to know. Consulting with a tax guy in the morning. No more Turbo Tax for us :-/ If I can’t follow the instructions reasonably on tax forms they are too fucking complicated. Quote HistoryQuoted: Quoted: you can do the standard deduction and the charitable contribution write off - its a one off for 2020 and 2021 "individuals can write off up to $300 in cash donations, and up to $600 for married couples filing jointly, made to qualifying charities in 2021, regardless of if they take the standard deduction or itemize their taxes. Typically, only those that do the latter can write off donations, but Covid-era laws changed that for 2020 and 2021." Good to know. Consulting with a tax guy in the morning. No more Turbo Tax for us :-/ If I can’t follow the instructions reasonably on tax forms they are too fucking complicated. Turbotax handles this perfectly - it prompts you to do this and explains about being outside the standard deduction. So does freetaxusa.com which I much prefer to Turbotax. |
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Posted: 4/14/2022 10:20:26 PM EDT
[#18]
hsa
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Posted: 4/14/2022 10:26:04 PM EDT
[#19]
Quote HistoryQuoted: you can do the standard deduction and the charitable contribution write off - its a one off for 2020 and 2021 "individuals can write off up to $300 in cash donations, and up to $600 for married couples filing jointly, made to qualifying charities in 2021, regardless of if they take the standard deduction or itemize their taxes. Typically, only those that do the latter can write off donations, but Covid-era laws changed that for 2020 and 2021." But that's an enhancement to the standard deduction, not a deduction for AGI. In 2020, it was a deduction for AGI, but not 2021. Any self employment income? You can do a SEP IRA through Monday. |
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Posted: 5/2/2022 5:33:16 PM EDT
[#20]
Quote HistoryQuoted: Good to know. Consulting with a tax guy in the morning. No more Turbo Tax for us :-/ If I can’t follow the instructions reasonably on tax forms they are too fucking complicated. Pay a tax dude 240 bucks to figure it out. |
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Posted: 5/8/2022 3:51:38 PM EDT
[#21]
Quoted: we just squeaked over one of the thresholds for that child tax credit, so they are wanting to increase our tax payment by that amount to get it back. I obviously would rather not do that. Is it as easy as contributing to my 401/403/or Roth and refiling? SO WHAT DID YOU DO??? |
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Posted: 5/9/2022 8:07:32 AM EDT
[#22]
Quote HistoryQuoted: SO WHAT DID YOU DO??? @Malum-Prohibitum got additional paperwork showing that i DID pay student loan interest, which was deductible. Dropped it below the threshold. Still waiting on final results, IRS website not updated yet. |
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