How Can Saving for Retirement Affect Your Tax Preparation?

There’s nothing better than realizing that you can save money on your paycheck by applying for tax deductions. The problem is that there are so many tax deductions out there that it can feel overwhelming to try to wade through all of that information to find the deductions you actually qualify for. The good news is that a tax preparation expert can often help you figure out the deductions you can claim so you can see that money go where it will help you the most-your paycheck.
One tax credit that many people overlook is the saver’s credit. The Retirement Savings Contribution Credit is designed for lower income families. It is an incentive provided by the government to encourage retirement saving, and it comes with significant tax deductions that will lower the total amount of money that you pay in taxes every year. Your tax preparation expert can help you figure out whether you are eligible for the exemption or not, but the good news is that the government has increased the eligibility requirements so more people will be able to take advantage of the program.
To be eligible for the program, your tax preparation expert will see if you meet the standards set. For example, married couples cannot make more than $36,000 every year. In fact, the deduction is set up so the head of household should not make more than $27,000 annually with other household members making less than $18,000 every year.
Also, as part of the plan your tax preparation expert has to show that you are paying at least 10 percent of your annual income to an eligible retirement saving program. If you rolled over savings from one retirement plan to another, the income cannot be counted toward your saving deduction.
Like many deductions it can be difficult to wade through all the fine print. Hiring a tax preparation expert can help you get all of the deductions that you are eligible for.

Karla Dennis

As seen in Forbes Magazine, Karla Dennis is an expert tax and business strategist. As an enrolled agent, Karla is licensed to represent taxpayers in all 50 states. She holds a Masters in Taxation and Business Development and is the author of two books, Tax Storm and Against the Odds.

Karla, CEO of consultancy firm Karla Dennis And Associates, Inc.™, has saved her clients thousands of dollars and has been featured in various media outlets such as Forbes, MSNBC, KTLA, Yahoo! Finance, and SmartMoney, marking her as the ultimate tax expert.

As of 2014, Karla became the new host on the “Mind Your Business” radio show, KTLK AM 1150, sharing her financial and business knowledge with the greater Orange County and Los Angeles areas. As a supporter of women’s rights and issues, Karla is part of the Women Network, an organization built to educate and mentor women. In addition, Karla is the radio host for Women Network Radio, a show that aims to uplift and empower women of all walks of life.