One of the most important things to know about filing your 2018 taxes is that using the free e-file service from the IRS gets you the fastest possible tax refund if you overpaid taxes in 2018.
E-file opened January 2019, so as soon as you have your W2s and other tax documents you need, it’s time to file. There are even a few things you can do now to further reduce your 2018 tax liability.
Until April 15, 2019, you can make an IRA contribution of $5,500. Plan to add $1,000 to that number if you are over the age of 55. This reduces your taxable income dollar-for-dollar while it helps pad your retirement account.
If you have a Health Savings Account (HSA) you can make additional tax-deductible contributions up to the limit of $3,400 for a single person and $6,900 for a family.
These two moves are good for your overall financial health and they’ll help reduce the taxes you owe, possibly giving your tax refund a boost.
If you choose to use a professional tax preparation service, they can advise you about how best to reduce your 2019 tax liability. If you want to reduce the amount of taxes you pay via payroll tax reduction they can also help you understand how increasing your deductions on your W2 form would impact your paycheck.
