With tax season in full swing, many taxpayers are looking for ways to reduce their 2024 tax burden or maximize their refund. While most tax-saving opportunities end on December 31, there are still some strategies available until the April 15 deadline.
Make the Most of a Health Savings Account (HSA)
If you have an eligible high-deductible health plan, you can still contribute to a Health Savings Account (HSA) for 2024 until April 15. The contribution limits are $4,150 for individuals and $8,300 for families. These contributions are tax-deductible, reducing your taxable income while helping cover medical expenses.
Contribute to an Individual Retirement Account (IRA)
You can also make pre-tax IRA contributions until the tax deadline. The maximum contribution for 2024 is $7,000, with an additional $1,000 allowed for those 50 and older. These deposits may be tax-deductible, depending on your income and employer-sponsored retirement plans, lowering your adjusted gross income (AGI) for the year.
Leverage a Spousal IRA for Married Couples
For couples filing jointly, a spousal IRA allows a non-working spouse to contribute to an IRA. This strategy offers a tax-deductible benefit, provided the working spouse has sufficient earned income. Evaluating the tax implications of both traditional and Roth IRAs is crucial for long-term financial planning.
Taking advantage of these strategies before the April 15 deadline could help lower your tax burden while securing savings for the future.
