Even though 2019 may be over, there are still a few things you can do to lower your 2019 tax bill, if you have a little cash on hand. You cannot make any more contributions to your 401(k) for last year, but you can still make IRA and Health Savings Account (HSA) contributions for 2019 as long as you do so before the tax deadline. The money you put in these accounts reduces your taxable income and could possibly move you into a lower tax bracket so you lose a smaller percentage of your income to the government. Plus, it’ll just help you be better prepared for the future.

You may contribute up to $6,000 to an IRA for 2019 or $7,000 if you’re 50 or older. Make sure your contribution is applied to last year if you want to claim the tax break now. Otherwise, you’ll have to wait a year.

Individuals can put $3,500 in an HSA for 2019 while families can set aside $7,000 here. In order to make HSA contributions, you must have a high-deductible health insurance plan. This is defined as one with a deductible of $1,400 or more for individuals or $2,800 or more for families.

Reach out to us here at Red Rock Tax & Consulting in Hurricane Utah and let us help you with a better financial future. Call us at 435-635-2494 and we can set up that free 30-minute consultation!

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