Americans are largely clueless about one of the best ways to keep the taxman at bay. There are many ways to trim your tax bill, but 75 percent of Americans are clueless about one of the easiest ways to keep Uncle Sam at bay.
Just 25 percent of taxpayers realize that you can still make a 2018 contribution to an IRA in 2019, according to NerdWallet’s annual tax survey.
In fact, you have the right up until Tax Day – April 15 – to make a contribution for 2018 that will reduce the amount of tax you owe on the return you are filing this year.
Just note only the contributions to traditional IRAs are tax-deductible upfront. If you put money in a Roth IRA for 2018, it will not reduce your taxes this year. Instead, you’ll be able to withdraw both your contributions and any earnings they generate tax-free in retirement.
Rev. Dr. Donna Taylor is the Pastor of Andrew Chapel, United Methodist Church on the Northern Neck in Montross, VA. Rev. Dr. Taylor promotes best practices for financial literacy and financial empowerment in the church and leads workshops throughout Northern Virginia. Currently, she serves as the Chair of the District Finance Committee. In May 2015, Rev. Dr. Taylor received her Doctor of Ministry from Virginia University of Lynchburg in Lynchburg, VA. Rev. Dr. Donna Taylor is married to Dr. David Taylor, who is also the Director of our church-based free clinic. They have two adult children and three grandchildren. In her leisure time, Rev. Dr. Taylor enjoys traveling, jogging, weightlifting, swimming, yoga, and interior decorating. In May 2015, Rev. Dr. Taylor received her Doctor of Ministry from Virginia University of Lynchburg in Lynchburg, Virginia. Rev. Dr. Taylor was born and raised in New York City and recently discovered her ancestral roots in Guinea-Bissau, West Africa. Rev. Dr. Donna Taylor is married to David Taylor and they have a son and a daughter. Their daughter is a educator and son is an Active-Duty Senior Seaman in the Navy married with three children. In her leisure time, she enjoys traveling, reading, swimming, writing poetry, crocheting and spending time with her family.