With April 15th right around the corner, you might find yourself with a big tax bill staring you in the face. If you have completed your taxes and you are required to send the government a big check, there are two things you may be able to do to change that tax bill into a tax refund as you can adjust the size of your tax refund.
Contribute to an IRA
If you did not max out your IRA contributions last year, you have until April 15th to make contributions. Yes, you can make 2012 IRA contributions on April 14th, 2013.
If you are contributing to to a traditional IRA, it will lower your tax bill. This is a very important distinction, because any contributions to a Roth IRA will not have any impact on your taxes. Remember if you are looking to save on taxes right now, you need to use a traditional IRA, not a Roth IRA.
Talk to an Accountant or Tax Preparer
If you have already maxed out your IRA contributions for last year, or you just don’t have any money to put into an IRA account, there is still one thing left to try: you can have your tax return reviewed by a professional.
You may have done your taxes on your own, or maybe even used a piece of tax preparation software to help you. But unless you are a tax expert, you may be leaving some tax credits off the table.
There is an entire industry of wealth management services and tax preparation that can help ensure you pay the smallest amount of taxes as possible. There is a good chance they can lower your tax bill.
Many of these companies are willing to look at your return for free. If they can’t save you any money, many won’t charge you anything. However, if they can save you money on your taxes then you will have to pay them a fee for their work.
These companies are useful around the tax deadline, but certain types of companies that provide wealth management services can be useful throughout the year. If you have a large net worth, you may find it beneficial to use a company to help manage your assets.