It’s not too late. You are not alone if 2013 flew by and now you find yourself wondering what are the remaining options. Here are a few 2013 tax moves that can still be made.
Contributions to Traditional and Roth IRAs can be made up until April 15, 2014. The 2013 maximum IRA contribution is $5,500 ($6,500 for those age 50 or older) for qualifying individuals.
Traditional IRA to Roth IRA conversions can be recharacterized (reversed in essence) as late as October 15, 2014 (with extended or amended returns). There are a couple situations when such a move may prove beneficial. One being, if you converted a traditional IRA to a Roth in 2013 and the fund value decreased significantly in the months after conversion. If a substantial portion of the traditional IRA was deductible contributions, you may end up paying taxes on this evaporated income. The second situation is if you find yourself in a lower tax bracket in 2014. In this scenario, you can recharacterize the conversion to avoid 2013 taxes when you are in a higher tax bracket.
SEP retirement plans can be established and/or funded as late as October 15, 2014 (for extended returns). These plans are for those that have self-employment income and want to make deductible contributions.
HSA (health savings account) contributions for tax year 2013 can be made up until April 15, 2014. Maximum contributions for 2013 are $3,250 for individuals and $6,450 for a family (additional $1,000 for those 55 or older).
The Oregon Residential Energy Credit is available for many heating & air conditioning systems, solar systems, and water heating systems installed in your home. The Oregon Department of Energy (ODOE) issues tax credit certification postcards which allow for the credit to be reported on the Oregon return. Applications for these certificates must be received by ODOE by April 1, 2014; the forms are available on their website.
These actions are described in general terms and most have limitations and details we are happy to help you navigate. Do not hesitate to get in touch with any questions, we are here to help you make the best tax decisions.