Treasury: Tax Day To Remain July 15
(Source: forbes.com)

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(Original link: forbes.com)

Paying 2019 taxes feels a little bit like hitting a moving target this year, but the Treasury provided guidance that, for now, sets a day in stone. For those still waiting for the drop-date deadline to pay last year’s taxes, then you have until July 15. The Treasury announced it does not plan to delay Tax Day another quarter.
For some – whether you’ve paid 2019 taxes or not – this could give you one last chance to take advantage of some perks the extension provided.
Leading into the typical, mid-April deadline, the Department of the Treasury extended the chance to pay taxes, creating a new deadline for July 15 due to COVID-19. As July 15 th nears, and total unemployment remains at 13.3%, some pressured the Treasury to extend the deadline into September.
“After consulting with various external stakeholders, we have decided to have taxpayers request an extension if more time is needed,” said Treasury Secretary Steven Mnuchin.
It gives you only two more weeks to take advantage of some perks that remain open to super-savers that want to maximize their retirement savings. In some cases, that’s true whether you’ve paid 2019 taxes already or not. Here’s three places to look, before the July 15 th deadline.
Max Out IRAs For 2019
Since 2019 tax year hasn’t officially come to a close, it leaves the door open for those that can afford to stash more cash in their independent retirement accounts (IRA).
If you haven’t paid taxes yet, and are awaiting the 2019 deadline, then you can still max out our traditional IRA for 2019 and receive the tax benefits. When you contribute to an IRA, you receive a tax deduction on the contribution. This allows you to deduct up to $6,000 from your federal taxes, if you haven’t filed yet.
For those that have a Roth IRA, however, you can max out your 2019 account whether you’ve filed taxes or not. The opportunity remains open because Roth IRAs don’t receive any tax benefit at the contribution stage. Instead, the tax benefits hit as you withdraw.
Since you’re not receiving a tax benefit for contributing today, you can still add up to $6,000 into your Roth IRA, even if you have already paid 2019 taxes.
Max Out You HSA For 2019
In a similar vein, if you have a high deductible health insurance plan, then there’s still time to open and contribute to a health savings account (HSA) for the 2019 tax year. When contributing to an HSA, it’s tax deductible, so you can reduce your total taxes paid by doing so.
As the HSA grows, you can use it for qualifying medical expenses. Experts refer to the HSA as a triple-tax free tool, since contributions aren’t taxed going in, it grows tax free and withdrawals face no levies, assuming you’re using the funds for qualified medical expenses.
The maximum contribution for an individual in 2019 is $3,500 and $7,000 for a family. If you haven’t paid taxes, then maxing out the HSA can provide you with another tool to grow your savings, that can serve as a healthcare buffer for when you’re retired.
Make An Additional Contribution To Your Child’s 529
A 529 does for college what an HSA does for healthcare, except it impacts your state income tax as opposed to your federal. When contributing to the 529, you’re not taxed on the contribution nor taxed on spending it, as long as you’re doing so to afford a child’s higher education. Unlike the HSA, however, a 529 ceiling varies widely depending on the state .
Since most states that levy an income tax shifted filing to the Federal date , it leaves much of the country still able to take advantage of this state tax deduction.
For New York, for example, you can deduct up to $10,000 on your state income tax, if you’re married ($5,000 if you’re single). California, on the other hand, offers no such deduction benefit. You have to review the tax rules within your state.
You also have to watch out for the gift-tax exclusion. You would potentially face a penalty, if, say you give more than $15,000 in 2019, which is the limit on gifts each year. If you give more, then it cuts into the amount you can give in a lifetime or pass down to your family, before estate taxes kick in.
For many people, living in one of 34 states that do provide a cut in taxes, then adding a little more towards your child’s education can cut that 2019 tax bill, even if you’re adding it today.
Ryan Derousseau
I’ve written about personal finance for Fortune , MONEY , CNBC and many others. I also authored The Everything Guide to Investing in Cryptocurrencies .
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I’ve written about personal finance for Fortune , MONEY , CNBC and many others. I also authored The Everything Guide to Investing in Cryptocurrencies ....