4 Ways to Cut Your 2017 Taxes
Tax reform may be looming on the horizon, but it's not likely to take effect until the 2018 tax year at the soonest. That means you can still use the best of the tried-and-true tax breaks to minimize your federal income taxes for the current year. Here are some of the most effective ways to cut your tax bill for 2017.
If you're eligible for the IRA deduction, then by all means make use of it by contributing as much as possible to your IRA. The IRA contribution limit for 2017 is $5,500, plus an additional $1,000 catch-up contribution for taxpayers age 50 and up. That means you could get as much as a $6,500 deduction just for saving for your retirement.
Most taxpayers can take the full IRA deduction for any contributions they make, but if you have access to a 401(k) or other workplace retirement plan, your IRA deduction may be limited. Single or head of household taxpayers with an annual income of $72,000 or more, and married filing jointly taxpayers with annual income of $119,000 or more, can't take the IRA deduction in these circumstances.
Source: Fool.com
