The IRS has 10 important tips for you about setting aside money for your retirement in an Individual Retirement Arrangement.

  1. You must be under age 70 1/2 at the end of the tax year in order to contribute to a traditional IRA.
  2. You must have taxable compensation to contribute to an IRA. This includes income from wages, salaries, tips, commissions and bonuses. It also includes net income from self-employment. If you file a joint return, generally only one spouse needs to have taxable compensation.
  3. You can contribute to your traditional IRA at any time during the year. You must make all contributions by the due date for filing your tax return. This due date does not include extensions. For most people this means you must contribute for 2012 by April 15, 2013. If you contribute between Jan. 1 and April 15, you should contact your IRA plan sponsor to make sure they apply it to the right year.
  4. For 2012, the most you can contribute to your IRA is the smaller of either your taxable compensation for the year or $5,000. If you were 50 or older at the end of 2012 the maximum amount increases to $6,000.
  5. Generally, you will not pay income tax on the funds in your traditional IRA until you begin taking distributions from it.
  6. You may be able to deduct some or all of your contributions to your traditional IRA.
  7. Use the worksheets in the instructions for either Form 1040A or Form 1040 to figure the amount of your contributions that you can deduct.
  8. You may also qualify for the Savers Credit, formally known as the Retirement Savings Contributions Credit. The credit can reduce your taxes up to $1,000 (up to $2,000 if filing jointly). Use Form 8880, Credit for Qualified Retirement Savings Contributions, to claim the Saver's Credit.
  9. You must file either Form 1040A or Form 1040 to deduct your IRA contribution or to claim the Saver's Credit.
  10. See Publication 590, Individual Retirement Arrangements, for more about IRA contributions.

You can get Form 8880 and Publication 590 at IRS.gov or order by calling 800-TAX-FORM (800-829-3676).

TaxACT Free Federal and Deluxe Editions include Forms 1040, 1040A and 8880. Start your TaxACT return now.

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Upcoming Tax Dates

September 7 Everyone
Federal Holiday (Labor Day) - Details

September 10 Employees who work for tips
If you received $20 or more in tips during August, report them to your employer - Details

September 10 Communications and air transportation taxes under the alternative method.
Deposit the tax included in amounts billed or tickets sold during the first 15 days of August.

September 14 Regular method taxes
Deposit the tax included in amounts billed or tickets sold during the last 16 days of August.

September 15 Individuals
Make a payment of your 2015 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the third installment - Details

September 15 Corporations
File a 2014 calendar year income tax return (Form 1120) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension - Details

September 15 S Corporations
File a 2014 calendar year income tax return (Form 1120S) and pay any tax due. This due date applies only if you timely requested an automatic 6-month extension - Details

September 15 Partnerships
File a 2014 calendar year return (Form 1065). This due date applies only if you were given an additional 5-month extension - Details

September 15 Corporations
Deposit the third installment of estimated income tax for 2015 - Details

September 15 Social security, Medicare, and withheld income tax
If the monthly deposit rule applies, deposit the tax for payments in August.

September 15 Nonpayroll withholding
If the monthly deposit rule applies, deposit the tax for payments in August.

September 25 Communications and air transportation taxes under the alternative method.
Deposit the tax included in amounts billed or tickets sold during the last 16 days of August.

September 29 Regular method taxes
Deposit the tax for the first 15 days of September.

September 29 Regular method taxes (special September deposit rule)
Deposit the tax for the period beginning September 16 and ending September 26.

September 29 Communications and air transportation taxes under the alternative method (special September deposit rule).
Deposit the tax included in amounts billed or tickets sold during the period beginning September 1 and ending September 11.

September 30 Wagering tax
File Form 730 and pay the tax on wagers accepted during August.

September 30 Heavy highway vehicle use tax
File Form 2290 and pay the tax for vehicles first used in August.

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