Done and in the mail as of an hour ago! No more and no less just a happy even.

A little (legal) tax trick?
 

For those of us past college... maybe WAY past college... and working on funding retirement, there is a little trick that is perfectly legal.

This may not apply to everyone. This scenario assumes the following conditions:

1. you have a traditional IRA

2. can deduct the contributions to the IRA

3. and will be getting a refund. Sounds a little restricted, but it really isn't.

You can do your taxes, taking the IRA deduction although you have not actually made the deposit yet. File those taxes early! When the refund comes, you use it to fund the IRA. For me, the additional tax deduction just about pays for the IRA contribution.

ETA: Just be SURE to fund the IRA by April 15 !!!!

I'm fortunate...my dad did mine on Sunday night :) I found out I was getting back like $1065. I came over to my parent's house tonight and my dad told me he got some good news...he got me another $500! So WOOHOO for dad doing my taxes!

I can't wait for the money - BILLS will deminish greatly!

Re: A little (legal) tax trick?
 

Not everyone qualifies for a traditional IRA do they? - but they can do Roth :)

I mailed mine out today. I had to wait longer because I set up a new IRA last minute and the SEC requires me to mail the annoying broker a certification that allows scrutiny over my investments (fascists).

-Rudey

hahahah thanks! :D

Re: Re: A little (legal) tax trick?
 

True, not everyone can do a traditional IRA. Depends on your age, income and whether you have an employer funded retirement, I believe. That's why I said that the info assumed that you have/qualify for the traditional IRA.

Doing this with a Roth doesn't really have the same impact. The Roth is not tax deductible.

The neat part about doing it with the traditional IRA is that the deduction actually pays for the contribution to the traditional IRA. Make sense?

Re: Re: Re: A little (legal) tax trick?
 

Depending on how much you put into the IRA right? I did not save 3K by maxing an IRA.

Actually if your income is low enough, there is a way to get the government to match your contribution but it's tricky ;)

-Rudey

Not gonna lie, i'm so guilty. I put off taxes till the last second possible.