Originally Published April 18, 2016
With the rush to finish our taxes on time, it can be easy to overlook possible deductions and ways to reduce your overall tab.
BLACK ENTERPRISE caught up with Barbara Weltman, a tax expert and spokesperson for one of the most popular tax guides in the United States, J.K. Lasser’s Your Income Tax
. Weltman shared the following last-minute tips to help you get through tax season.Contribute to your IRA, if eligible, to build retirement savings and cut taxes.
A deductible contribution lowers your adjusted gross income, which increases eligibility for other deductions and tax credits. The contribution must be made by April 18, even if you get an extension to file your 2024 return.
Review your premium tax credit.
If you received this government subsidy for health coverage purchased through the Marketplace, make sure the credit amount is correct. You may be entitled to an additional credit or owe
the government money. You may also be eligible for credit now, even if you didn’t qualify when you bought your coverage. Complete Form 8962 to determine your correct credit amount.Determine which parent gets tax breaks for a child.
When parents split up, usually, the custodial
parent is entitled to the exemption and other tax breaks related to the child. If this parent wants the other parent to get these breaks (e.g., a divorce decree requires it; it saves the family money), be sure to sign Form 8332.RELATED CONTENT: Debate Over Taxes And Reparations: Insights From Tiffany Cross, Angela Rye, And Andrew Gillum