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Saving for retirement can really save you on your taxes

If your employer offers a 401K or other retirement plan, maximizing your contributions could save you big on taxes. Your contributions to these plans are tax deferred and lower your current taxable income. In addition most companies match your contributions providing you with even more reason to save.

The IRS also offers a tax credit on the money you put away if you meet the income guidelines. The Retirement Saver's Credit can provide you a non-refundable credit up to $1000 ($2000 is MFJ) to help off-set your tax.

If your company doesn't provide a retirement plan you might consider opening a Traditional or Roth IRA. These accounts also offer tax saving benefits and are eligible for the IRS Retirement Saver's Credit. In addition you can fund a IRA until the tax filing deadline allowing you to see the tax benefit before actually funding the account. Many taxpayers use their tax refunds as a way to fund their IRAs.

Consider planning ahead to find ways to maximize your tax savings. Your tax professional can show you just how much tax and what credits you can qualify for by funding your retirement plan. 

Heather Bockrath