My hubby is in school so we need to get the taxes done and fill out the FAFSA as quickly as possible. I am awaiting one W-2 as well as the forms from DH's school telling us how much we paid last year in tuition & fees.
I have been playing with the numbers and it looks like we made a lot more than we ever have before - which is great! 2008 was my first full year as a hygienist so that is the reason we did so well, but I am worried now that we may not be awarded as much as we need for DH's school for the '09-10 school year. That is why I am looking for ways to lower our AGI.
I thought if I put in a bunch to my Roth IRA that it would reduce our AGI but when I try that in our tax software it does not change anything. I was sure that would work so now I am not sure how to proceed.
We do not own a home so no mortgage stuff for us. We do have a child but she is school-aged so no child care expenses. Do you happen to know another way to reduce our AGI?
Reducing AGI - any ideas?
January 29th, 2009 at 03:43 am
January 29th, 2009 at 12:40 pm 1233232806
January 29th, 2009 at 01:22 pm 1233235378
January 29th, 2009 at 02:12 pm 1233238351
January 29th, 2009 at 03:06 pm 1233241569
January 29th, 2009 at 03:13 pm 1233242001
A recharacterization is simply renaming the money you've invested. It does not change amounts invested or when they were invested or the number of shares you bought. Simply a new title...Traditional Ira. Call the company you invested with to do this. I think it can be done over the phone, otherwise you need to send a letter. Once you have confirmation that it was completed then you can file your taxes.
Increasing 401K contributions this year, will only help next tax year.
January 29th, 2009 at 10:48 pm 1233269308
January 31st, 2009 at 07:32 pm 1233430343
Not that it is a great thing, but we did pay close to $1400 in student loan interest last year so our AGI was reduced by that much. If we put $2,000 into a traditional IRA it will increase our rebate by $500 so we may go this route also, but I'll have to use money from the EF to fund it...so I'm not sure.
Thanks for all the helpful advice!