In addition to having two extra days to meet the tax deadline this year, taxpayers also have two extra days to make contributions to their Individual Retirement Accounts (IRA). This is great news for those searching for additional deductions because you may be able to deduct some or all of your contributions.
Here are some guidelines to keep in mind for your IRA contributions:
- You must make contributions for 2011 by April 17, 2012.
- For 2011, the most you can contribute to your traditional IRA is generally the smaller of the following amounts: $5,000 for most taxpayers, $6,000 for taxpayers who were 50 or older at the end of 2011 or the amount of your taxable compensation for the year.
- To contribute to an IRA, you or your spouse (if you file a joint tax return) must have taxable compensation. Examples of taxable compensation include: wages, salaries, commissions, tips, bonuses, or net income from self-employment.
- To contribute to a Traditional IRA, you must be under age 70 1/2 at the end of the tax year.
This is a great opportunity to save last minute tax deductions. TaxSlayer.com’s Deduction Guide will make entering your contributions easy and guide you step-by-step. Try it today and then relax knowing that you have completed your tax return!