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Monday is Tax Day. Alexandria CPA Kurt Oestriecher has a tax tip for seniors. Oestricher says people over the age of 70 can use a portion of their minimum retirement distribution to get a tax break if they donate it to a church or a charitable organization.
“If you are getting a $30 thousand distribution out of your IRA and you want to give lets say $10 thousand of that to a charity, if the trustee sends the money directly to the charity, you only have to pay the tax on the $20 thousand not the $30 thousand.”
Oestriecher says for taxpayers looking to reduce their tax burden when they file, making a significant contribution to your 401k plan or ROTH IRA.
“That is where the best deduction. That is a above the line deduction. That just reduces the taxable amount on your W-2 and it helps you save for your future. So I really urge people to look at taking advantage of those tax differed plans or a ROTH IRA.”
Oestriecher says for those who won big by gambling, they will have to pay taxes on those winnings even if they suffered gambling loses with other bets.
“Every time you win and get that nice little W-2G from your favorite gaming establishment know at the end of the year you’re going to pay four and a half percent of that to the state of Louisiana regardless of any losses you may have.”
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