You can reduce your taxable income (and make your tax balance smaller or tax refund bigger) by putting money into a Traditional IRA. You can put money into the IRA as late as April 15th for it to help you in the year that you are filing at the time. For example it is 2011, and you are filing your 2010 tax return. That means money that you put into your Traditional IRA is deductible on your 2010 tax return as long as you put the money into the IRA before April 15th of 2011.

Contribution Limits:
You can contribute up to $5,000 each year if you are 49 or younger, and up to $6,000 if you are 50 or older.

Tax Savings:
If you are single and make about $30,000 throughout the year, you could save as much as $1,300 by contributing the max amount into your IRA.

Complimentary Tax Planning Consultation. Need tax advice for next year, need to make sure that you won’t owe money at the end of the year, want to know what deductions you qualify for, want to know what receipts you need to keep track of, starting a new business, need bookkeeping or accounting services for you current business, need payroll services, need to start a retirement account to save for the future and save on taxes? Contact Fast Tax Services for a complimentary tax planning consultation.

It is important to file your taxes on time to avoid needless penalties and interest. You have 3 penalties to pay if you don’t file on time: Failure To File, Failure to Pay, and Interest.

Failure to File Penalty: The penalty is 5% for each month the tax return is late, up to a maximum of 25%.

Failure to Pay Penalty: The penalty is 0.5% for each month the tax is not paid in full with no no maximum limit.

Interest: Interest rates change every few months, but the current interest rate is around 4% per year.

So, File your taxes on time and save on taxes, penalties and interest. If you still haven’t filed, today is the best day to get your taxes done. Fast Tax Services is open all year round. Call today to get your taxes taken care of.