Can I reduse my federal tax due ?

Forum|Forum|6 years ago
April 2, 2020
2 replies
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TurboTax Live Self Employed

hbl3973

Alumni - Champ

sndsolis69

You are not alone here! I see two issues:

Reducing tax
Paying tax

If you act by April 15th, you can generally contribute to an IRA retirement plan. The details of whether you qualify to make a tax deductible contribution are spelled out in IRS Publication 590A (https://www.irs.gov/pub/irs-pdf/p590a.pdf). This would reduce your income, thereby lowering your tax as well as putting away money for retirement. Outfits like Vanguard and Fidelity as well as many banks handle such accounts all the time.

With regards to paying tax over time rather than all at once, both the IRS and states allow you to set up a payment plan. It will incur interest, of course. Let me know if that is a necessity for you.

VictoriaD75

Level 12

It depends. If you have additional deductions or qualify for other tax credits, it is possible to reduce your federal tax due. Also, if you happen to have self-employment income, there are business deductions you could take. We cannot see your return in this forum, but below are some resources that may be useful.

What are Itemized Deductions?

Taking Business Tax Deductions

Review the Deductions & Credits section of the software to see if anything applies to your personal situation.

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