SAN ANTONIO – As we start a new year, it’s a good time to think about your taxes.
If you’re lookin to save some money on your 2022 tax bill, boosting your retirement savings could offer some big tax benefits.
Contributions to your 401K come out of your paycheck before income taxes are deducted, which lowers your tax bill for the year.
If you’re over the age of 50, you can make a catch up contribution of $6,500 for the year.
And there may be another benefit to depositing money in your 401K: your employer can also match some of the money that you put into your retirement account.
Another way to save for retirement is with an IRA - there are several different types available -- with contributions coming from either pre-tax or after-tax dollars.
Experts say you can, of course, put up to $6,000 into this account, and you still have some more time to give or put money into those accounts, because you don’t have to do so until April 18 of next year, which is the tax deadline.
It’s also important to check the balance in your flexible spending account.
Pre-tax money deposited in the FSAs can be used for health care expenses not covered by insurance.
During the holidays, many people find themselves in the giving spirit -- and making those charitable donations can give you an added deduction -- but you’ll want to make sure to check out the organization that you are giving the goods or the money to, because they have to be a tax exempt organization in order to qualify.
And one final bit of expert advice -- make a list of all the documents you’ll need. That way, you’ll be organized when it’s time to file your 2022 taxes.