2024 Tax Tips

Last-Minute Tax Tips for 2024 

Tax season is upon us, but don’t worry, there’s still time to make some savvy moves before you file your 2024 federal tax return.

Check out these four smart strategies you can still take advantage of before Tax Day rolls around:

1. Contribute to a Traditional IRA: You can contribute up to $7,000 (plus $1,000 if you’re 50 or older) to a traditional IRA. This can help lower your taxable income and might even bump you into a lower tax bracket. Or, if you’re thinking long-term, a Roth IRA offers tax-free withdrawals in retirement, and a “backdoor Roth” could be an option if you don’t qualify for the usual routes.
   
   
2. Consider a SEP IRA if Self-Employed: Small business owners can save more with a SEP IRA. Thanks to the SECURE 2.0 Act, you can contribute with pre-tax or after-tax dollars. For 2024, you can set aside up to 20% of your net income or $69,000, whichever is less. If you have employees, you can contribute up to 25% of their compensation or $69,000.
   
   
3. Max Out Your HSA: Health savings accounts (HSAs) offer a triple tax advantage: contributions reduce your taxable income, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. For 2024, individuals can contribute up to $4,150, and families up to $8,300. If you’re over 55, you can add an extra $1,000. Maxing out your HSA before the deadline can lower your tax bill.
   
   
4. Don’t Overlook Itemizing: If your deductions exceed $14,600 for single filers or $29,200 for married couples filing jointly, itemizing could save you more than the standard deduction. Consider deductions for mortgage interest, property and sales tax, and medical expenses that exceed 7.5% of your adjusted gross income (AGI).

Make the most of these tips to maximize your tax savings and set yourself up for a brighter financial future!

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