Whether you do your own taxes or get them done by a licensed tax preparer, this yearly task is often looked upon as one of the more dreaded chores we face as taxpayers. Making it even more formidable is the fact that tax laws are perpetually changing. This, by the way, is one of the primary reasons you really should consider consulting a professional tax advisor.
To learn about the 2015 tax changes that may affect you, the IRS website is an excellent resource. Publication 17 addresses tax changes; the section titled “What’s New” summarizes important tax changes that took effect in 2015. Most of the changes are discussed in more detail throughout that publication, but you can keep up to date with the latest information about tax law topics covered in Publication 17 — including legislation enacted after it was published — here. These are the Recent Developments for Publication 17 as of February 17, 2016.
Here are some tax-related financial tips you might not know about.
- If you have an IRA, you may be able to claim a deduction on your individual federal income tax return for the amount you contributed to it. Consult your tax preparer to find out what you may be eligible for. If this sounds good to you but you don’t have an IRA account and are interested in learning more, start here!
- Homeowners may be happily surprised to know that all that hard work you put into building equity on your home can pay off — literally — when it comes to taxes. Why? Because you can use your Home Equity Line of Credit (HELOC) to pay your taxes. Securing a HELOC* allows you the freedom to write a check for the cash you need, up to a maximum approved credit line. You can use the funds any way you want to. So, if you owe money to the IRS, you might want to consider this option.
Keeping current on tax updates and working with a tax preparer can help to maximize your refund. To make that money grow even more, it’s wise to deposit it into an interest-bearing account, such as savings, money market, or certificate of deposit (CD). Visit the NVE website, one of our convenient neighborhood branches in Bergen County, or call 1-866-NVE BANK (683-2265) to learn more.
*Interest on the loan may be tax deductible-consult your tax advisor.