More Time to Save
If you file your Form 1040 today, it’ll give you time to realize that you owe the IRS money- this may not be the case for everyone, of course. But better safe than sorry, right? With the added time on your hands you could save some money for the future while changing the tax bill into a tax refund. Neat, no?
This is particularly helpful for those who haven’t been able to contribute their full amount to a traditional IRA for 2020- and let’s face it, 2020 has been a nasty rollercoaster ride, so it’s understandable that you may need a little more time.
You may also deduct the contribution on your 2020 return depending on your income, too. This will help your tax bill to come down. What’s more, you may even get a refund, instead. Plus, you could even qualify for the Saver’s Credit for your 2020 IRA contribution, trimming up to $1,000 off your bill.
But there’s even more! Because similar rules also apply to Health Savings Accounts, also known as HSAs.