i did my taxes and found that i owe ~$600. so was wondering if i can buy some CDs or invest in some savings which can be tax deductible . basically instead of throwing that money away to IRS, invest and keep that money.
2007-04-11 10:10:11 · 9 answers · asked by Vince P 1 in Business & Finance ➔ Taxes ➔ United States
no i am not eligible to get tax deduction by opening a IRA due to my tax bracket and participating in employer retirement accnt
2007-04-11 10:16:19 · update #1
Tax shelters are for this year. There is no way to avoid taxes you owe on last year's income.
2007-04-11 10:19:22 · answer #1 · answered by obelix 6 · 1⤊ 0⤋
College savings plan is deductable
IRA, not Roth, is deductable to $4100
Govenment I Bonds are Tax defered interest,
Annuities offer tax defered interest
Both of these in the end you will need to pay taxes on your investment.
You say you owe 600 in tax, in the 20% tax bracket you would need to offset that with a $3000 deduction, only thing around for that much is an IRA. And you need to put up the $3000 right now in the IRA before the 17th of April.
2007-04-11 17:16:59 · answer #2 · answered by James M 6 · 0⤊ 1⤋
An IRA would be the only way - and since you say you aren't eligible for that, then no, you'll have to pay the taxes. Even if buying CD's was a tax deduction, which it's not, it's too late now to do anything about 2006.
2007-04-11 17:50:43 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Once you owe them, it's too late to deduct them. Some expenses are deductible, but they have to have been invested in during the tax year. If you did your taxes yourself, it may be helpful to take them to a professional just to make sure you're not missing anything, and they can tell you what kinds of things to invest your money in in the coming year to avoid this at tax time next year.
2007-04-11 17:13:43 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You mean for next year.
This year Taxes will be done, and need to
be paid.
Also paying your Taxes is not throwing
money away.
Sometimes on your computer go into
my documents, open up a file to type.
Type all the the things you can think of
that is paid for, or in part by the Government.
There are many things.
You got to help by paying your part.
You might want the job to take more money
out of your Check for Taxes.
Then they might be paying you back money
In a Refund.
2007-04-11 17:33:28 · answer #5 · answered by elliebear 7 · 0⤊ 0⤋
It's too late for last years taxes. You might as well pay em, and be done with it. As for this year, you could go back to your employer and change your #of dependents. See how to adjust it, so that they take out enough this year, so you won't be in the same situation next year.
2007-04-11 17:23:22 · answer #6 · answered by ASK 3 · 0⤊ 0⤋
Are you eligible to deduct your IRA contributions?
2007-04-11 17:14:47 · answer #7 · answered by derek 4 · 0⤊ 0⤋
If you qualify to do a traditional IRA, you could reduce your tax liability.
2007-04-11 17:13:02 · answer #8 · answered by Chaney Lake Girl 2 · 0⤊ 0⤋
lol the irs will come and kill u if u dont pay
2007-04-11 17:13:23 · answer #9 · answered by Anonymous · 0⤊ 0⤋