Tax Season: Deductions And Contributions That Are Still Available

Tax Season

Tax season is almost coming to an end, with the April 18th deadline only one week away. Trust us when you say only a minority have completed their taxes, received their refunds, and got it out of the way as well. By the beginning of March, during this tax season, only 55 million of the predicted 168 million filings had come in, according to the IRS.

If you are still hesitating to complete your filings for this tax season, in the hopes of finding some more deductions to include, then the following might be of some help to you.

What’s Left To Do In This Tax Season?

First of all, try to hit the maximum limit on your contributions toward health savings accounts (HSA) or individual retirement accounts (IRA). If you manage to do that before April 18th, you will still qualify for another deduction during the 2022-2023 tax season. However, be certain to demarcate the contribution amount toward the 2022 tax year.

The total 2022 contribution limits for IRA, which includes the Roth IRAs, stands at $6000 for individuals aged 50 years and younger. It is $7000 for those who are older. The contribution limits for HSA stand at $3650 for those covering only themselves. It increases to $7300 when the family is covered. Individuals who are at least 55 years of age can deposit a further $1000 in the form of a contribution to “catch-up”.

Furthermore, there are about 6 states that let you contribute and claim deductions in April for contributions to 529 plans. As per Savings for College, Wisconsin, South Carolina, Oklahoma, Mississippi, Iowa, and Georgia are the states that allow this deduction during the current tax season.