Ask Terry Questions Taxes and a Single Person

Taxes and a Single Person

By Terry Savage on February 10, 2015 | Taxes & Economy

I am 60 years old, single, and making around $95,000 a year. I have a 401 and put the maximum in each year.  However, taxes really hit me hard. Is there anything else I can do to reduce my taxes?

Terry Says:  There are very few “tax shelters” left in the tax code.  If you buy a house and pay interest on the mortgage, you could get a tax deduction for the mortgage interest and property taxes.  You could get married, and possibly lower your tax bracket — kids are a great tax shelter!  (Well, they’re costly, too!)  Seriously, short of taking on more dependents, most tax benefits are tied to spending/investing in ways you might not want to consider.

Use TurboTax to prepare your taxes this year, and it will remind you of any small possible deductions related to your work that might give you a break.

It looks like you qualify for a Roth IRA, based on income, so you might try that.  You won’t get a deduction for your contribution, but you will get tax-FREE  growth of the investment — if the government keeps its promise!

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