For Immediate Release
March 13, 2012
|CONTACT: Martha O’Gorman
Chief Marketing Officer
(800) 790-3863 ext. 8022
LIBERTY TAX EXAMINES IRA CHANGES FOR FILING A 2011 TAX RETURN
(Virginia Beach, VA)
There’s still time to reduce your tax bill by contributing to an
existing IRA (Individual Retirement Arrangement) or opening one at a bank or
other financial institution. Liberty Tax urges taxpayers to plan ahead for retirement, and make
contributions by the tax filing deadline to take advantage of tax breaks. IRA contributions may be fully or partially
deductible. If you
contributed to an IRA or an employer-sponsored retirement plan in 2011, you may
be eligible for a Savers Credit of 10% to 50%.
This nonrefundable credit is based on the return income, and can be up
to $1,000 per taxpayer depending on your adjusted gross income. It can be taken
in addition to the deduction of the traditional IRA contribution. This credit
does reduce your taxable amount dollar per dollar, but not less than zero.
“Taxpayers covered by a pension
plan can also deduct IRA contributions if they meet the modified adjusted gross
income requirements,” commented John Hewitt, CEO of Liberty Tax Service.
2011, a couple filing married filing jointly whose modified adjusted gross income
is more than $90,000 but less than $110,000 can take a partial deduction for a traditional IRA, and so can single
taxpayers (including head of household filers) making more than $56,000 but
less than $66,000.
you’re contributing to a Roth IRA, a
couple filing married filing jointly can make up to $169,000, and a single
taxpayer can earn up to $107,000 and make the maximum contribution to a Roth
IRA. The contribution limit for 2011 is $5,000 ($6,000 if age 50 or older) for
both traditional or Roth IRAs. Taxpayers converting
traditional IRAs to Roth IRAs are not subject to modified AGI and filing status
who converted traditional IRAs to Roth IRAs in 2010 and didn’t report the
taxable income must generally report half of it this year on their 2011
again, taxpayers can take an allowance for tax-free distributions from individual
retirement plans for charitable purposes on their 2011 returns.
About Liberty Tax Service
Liberty Tax Service is
the fastest growing retail tax preparation company in the industry’s
history. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax
industry, Liberty Tax Service has prepared over 9,000,000 individual income tax
returns. With 42 years of tax industry experience, Hewitt stands as the most
experienced CEO in the tax preparation business, having also founded Jackson
Hewitt Tax Service.
Liberty Tax Service provides
computerized income tax preparation, electronic filing, refund loans, and
online filing through eSmart Tax. Each
office offers customers audit assistance, a money back guarantee, and free tax