How To Turn Your $1400 Stimulus Check Into $1700 – And It’s Totally Legal
According to CNBC Congress is set to approve the $1.9 trillion dollar stimulus package today which includes, among other things, a $1,400 stimulus check for individuals. It’s expected that these checks will go to those earning less than $75K a year and then phasing out for those who make more than that. Here’s a little trick on how you can turn that check into an even bigger stimulus.
The idea of the stimulus is to put money in the hands of those that need it most but the truth is, not everyone needs that money right now to get by. So if you don’t need it, here’s a way to turn that $1,400 into roughly $1,700.
Put it into a Traditional IRA. That’s right, save it for retirement. Because IRA contributions count against your taxable income, you’ll get money back on your taxes when you file next year.
For example, if your taxable income as an individual usually falls into the $40K – $75K range your tax rate is 22%. If you put that stimmy into an IRA the $1,400 is deducted from your taxable income. $1,400 x 22% = $308 back on your taxes when you file next year. And the best part is that you still have that original $1,400, now tucked away into a retirement account. You’ll want that when you get older.
This is just one example, everyone’s tax situation is different. Consult a professional. I’m not qualified to give financial advice , this is merely a path to get you thinking about how to best use that upcoming stimmy.
Me? I’ll be using my free government money to buy stonks I saw on Reddit memes. I highly recommend against doing this.