3 Last Minute Tax Tips

Originally Published Apr. 18, 2016

With all of the rush to get our taxes finished 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 2016.

Weltman shared the following last minute tips:

Contribute to your IRA if eligible to build retirement savings and cut taxes.

taxes, ap poll, associated press,
Photo by fizkes/Getty Images

A deductible contribution lowers your adjusted gross income, which increases eligibility for other deductions and tax credits. The contribution for 2015 must be made by April 18, even if you get an extension of time to file your 2015 return.

Review your premium tax credit.

taxes, tax credit, parents, child
Photo by Pixelimage/Getty Images

If you received this government subsidy for health coverage purchased through the Marketplace, make sure the amount of the credit is correct. You may be entitled to an additional credit, or owe the government money. Or you may be eligible for the 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.

Taxes, parents, wealthy tips
Courtesy of Pexels Photo by Monstera Production

When parents split up, usually the custodial parent is entitled to the exemption and other taxbreaks related to the child. If this parent wants the other parent to get these breaks (e.g., it’s required by a divorce decree, 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