With about one week left in the official 2013 tax filing season, most readers will have filed their returns by now, but some will have procrastinated until the last minute or perhaps even intend on filing an extension. Sometimes procrastination is driven by fear of the unknown – in this case, the potential to have to send Uncle Sam some additional tax dollars if you under-paid last year.

Unfortunately, other than a last minute deductible contribution to your IRA or other retirement plan, there isn’t a lot you can do to affect the outcome at this point. But, it’s a great time to consider strategies that can help position you over the remainder of 2014 that may help with next year’s tax bill.

For those employed or self-employed, contributing to a retirement plan as simple as an IRA or the 401K offered by your employer are awfully hard to beat as a savings vehicle, as well as the incentive to deduct contributions against income to reduce your tax bill. Traditional IRA contributions may not be deductible if you also participate in a plan sponsored by an employer. See IRS guidelines to determine deductibility.

For those who purchase their own health insurance, and for whom a high deductible health plan is appropriate, you can combine a Health Savings Account (HSA) with your health insurance plan. Contributions are capped presently at a bit over $6,000 per year, but contributions are tax deductible no matter what your income level or participation in retirement plans. The money in the HSA is not taxed when removed as long as it is used for qualifying healthcare expenses. These range from dental work to eyeglasses to full blown surgical procedures.

For investors who are using their accumulated nest egg to produce income, some types of investments offer tax advantages. Two weeks ago here in the Sun, I wrote about how municipal bonds were attractively priced compared to other types of fixed income investments. You can still read that article as the Sun’s website (www.amisun.com) and look up the March 26 edition in the archives.

I won’t go into too much detail here other than to say that tax free- municipal bonds are currently yielding almost as much as taxable bonds of equivalent quality, but you don’t have to pay taxes on the income. It is definitely worth taking a look, especially for those in higher tax brackets.

Another income oriented investment I’ve written about before and which is worth mentioning here is Master Limited Partnerships (MLP’s). These partnerships are bought and sold just like stocks on the New York or NASDAQ exchanges. Typical distribution yields are in the 6 percent range, much of which is sheltered from tax due to the unique corporate structure of these vehicles and some corresponding IRS regulations.

Notice I didn’t say the income from MLP’s is tax-free. It is effectively tax delayed with little tax due now on the income when it is received, but with a corresponding reduction in cost basis in the units of the partnership you own. Translation – you pay capital gains tax when you sell the partnership units rather than ordinary income tax each year as the income is received. Since capital gains tax rates are lower than ordinary income tax rates, combining the lower rate and the delay in payment works out to be an effective tax friendly strategy.

Good luck with implementing your 2014 tax reduction strategy.

Tom Breiter is president of Breiter Capital Management, Inc., an Anna Maria based investment advisor. He can be reached at 778-1900. Some of the investment concepts highlighted in this column may carry the risk of loss of principal, and investors should determine appropriateness for their personal situation before investing. www.breitercapital.com

Tom Breiter is president of Breiter Capital Management, Inc., an Anna Maria based investment advisor. He can be reached at 778-1900. Some of the investment concepts highlighted in this column may carry the risk of loss of principal, and investors should determine appropriateness for their personal situation before investing. Visit www.breitercapital.com.