Can I still save tax for 2019?

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Topic Author
ssn
Posts: 14
Joined: Sat Jan 25, 2020 10:15 pm

Can I still save tax for 2019?

Post by ssn »

Hello,
I have not submitted my tax return for 2019 yet since the date has been postponed to July. However, I started making entries in turbotax and realizing that I have taxes due. This is because I have CDs, Vanguard mutual funds in a regular brokerage account and they generated returns. I was not aware that I am supposed to pay the taxes at regular intervals on this income. Anyway, as of today, is there any way I can reduce this tax due?
My wife and I both have 401K plan and I don't think we are eligible for IRA.
So any recommendations?

Thank you,
-ssn
Silk McCue
Posts: 4884
Joined: Thu Feb 25, 2016 7:11 pm

Re: Can I still save tax for 2019?

Post by Silk McCue »

Owing taxes is not a big deal. You should fully complete your TurboTax return in it will show you if you owe any penalties and interest. If you do it is likely not a big number.

You need to know for certain whether or not you can contribute to an IRA for 2019 - not being sure is useless. That would be the only way to reduce your tax burden at this time that I can think of.

You don't have to make quarterly estimated payments so long as you can properly withhold what is due via employment, SS, Pension, or withdrawals from tax deferred accounts. It should be relatively easy to estimate your taxes and get the correct amount withheld. You can always tweak the withholding later in the year if needed due to unexpected income showing up,

Cheers
livesoft
Posts: 74606
Joined: Thu Mar 01, 2007 8:00 pm

Re: Can I still save tax for 2019?

Post by livesoft »

ssn wrote: Sat Apr 18, 2020 10:36 am .... Anyway, as of today, is there any way I can reduce this tax due?
My wife and I both have 401K plan and I don't think we are eligible for IRA.
So any recommendations?

Thank you,
-ssn
I would explore whether you are eligible for IRA contributions. The "I don't think" is a bit wishy-washy. So either you are eligible for Roth IRA contributions which won't save on taxes now, or eligible for deductible traditional IRA contributions which will save on taxes now, or eligible for non-deductible tIRA contributions which won't save on taxes now, or something else.
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02nz
Posts: 6132
Joined: Wed Feb 21, 2018 3:17 pm

Re: Can I still save tax for 2019?

Post by 02nz »

livesoft wrote: Sat Apr 18, 2020 11:19 am
ssn wrote: Sat Apr 18, 2020 10:36 am .... Anyway, as of today, is there any way I can reduce this tax due?
My wife and I both have 401K plan and I don't think we are eligible for IRA.
So any recommendations?

Thank you,
-ssn
I would explore whether you are eligible for IRA contributions. The "I don't think" is a bit wishy-washy. So either you are eligible for Roth IRA contributions which won't save on taxes now, or eligible for deductible traditional IRA contributions which will save on taxes now, or eligible for non-deductible tIRA contributions which won't save on taxes now, or something else.
Read this to figure out if you may be able to deduct traditional IRA contributions: https://www.irs.gov/retirement-plans/ir ... ion-limits

The only other thing I can think of would be HSA contributions, if you have an HSA-compatible high-deductible health plan (HDHP).
Topic Author
ssn
Posts: 14
Joined: Sat Jan 25, 2020 10:15 pm

Re: Can I still save tax for 2019?

Post by ssn »

Thank you all.
I checked the link from O2nz and we are not eligible for traditional IRA deductions at all. I had opted for PPO plan at my employer and would like to continue with it for at least 1 more year.

-ssn
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Flobes
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Joined: Tue Feb 16, 2010 12:40 am
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Re: Can I still save tax for 2019?

Post by Flobes »

Silk McCue wrote: Sat Apr 18, 2020 11:16 am Owing taxes is not a big deal. You should fully complete your TurboTax return in it will show you if you owe any penalties and interest. If you do it is likely not a big number.
You can overpay your taxes by some small amount. Then, on your tax return, direct that refund to be sent to your checking account. Should there be any future "stimulus" payments by the government, your correct direct deposit info will be on file.
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