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6 New Ways Retirees Can Save on Taxes This Season

January 20, 2023 · Taxes
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Photo by Isara naksanee from Shutterstock

#6 File your taxes on time to save money

This is the simplest way to avoid paying more taxes than necessary, and it’s also a great way to save that money for something else. After all, even if you do not think you will be able to file your taxes in time, it is very easy to file for an extension and then take your time to do your taxes. In the end, you’ll save your wallet, as well as stress and other financial issues.

If you do not file your taxes by your state’s deadline or by the extension in order to get more time to file them, you will face hefty fines and will end up having to pay even more than before simply because you did not do this. Being on time or getting an extension is going to be a lifesaver, and it is the best way to go, no matter what other methods you may be using to save some extra money.

If you apply for an extension, it would also be a good time to look into your tax credit and tax deductions so you have a better idea of how much you will have to pay in taxes. Tax deductions are going to cut down on the income from which your taxes are going to be calculated, while the tax credit is the one that is going to reduce the total income tax you will owe (if you need to brush up on your tax terms, make sure to read up on them ahead of time).

Like always, the deadline will vary state-by-state, but the estimated date everyone keeps in mind is April 18, 2023.

And to make sure that you are all set when the time comes to start filing, make sure you have covered all these preliminary steps ahead of time!

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