Contribute to a Retirement Fund to Save on Taxes

Year in and year out, making a contribution to an individual retirement account (IRA) offers a substantial tax deduction that you can take up until the filing deadline. If you are under 50, you can contribute up to $6,000 to a traditional IRA for 2020, or up to $7,000 if you are 50 or older. The resulting deduction for a taxpayer in the 25% federal tax bracket can be as much as 30% of his or her total contribution, according to the Mass Mutual blog, and it’s deliverable immediately as tax savings. #LastMinuteTaxTips