Tax planning is more than completing and filing your state & federal taxes.Check out our tips for saving on your 2024 taxes before year’s end:
Everybody wants to save on their taxes. If you think tax-saving strategies are too complicated, you could be missing out on tax savings. There are a few simple tax-saving strategies available to nearly everyone.
Tax planning is more than completing and filing your state andfederal taxes. Year-end tax planning means going over potential tax deductions that you may have missed during the year. Usethese planning strategies with enough time to take advantageand set yourself up for success this tax season:
Defer Income
If you have income scheduled to hit your account before the endof the year that you can defer (i.e. bonuses, selling stocks & capital gains, or year-end billings/invoices for self-employed individuals)waiting until the beginning of 2025 could potentially keep you in a more favorable tax bracket.
Tax-Loss Harvesting
Through tax-loss harvesting, the capital gains from one investment balance out the capital losses from another investment. It won’t eliminate what you owe for this year, but it can help offset what you owe on your taxable investment accounts.
Maximize 401(k) Contributions
Since contributions to your employer-sponsored retirement account are pre-tax, the more contributions you make, the lower your taxable income is. Increasing your retirement contributions will decrease your take-home pay but will help you reduce your taxable income and save more for retirement. Talk to your employer or HR department about ways to hit your annual limit.
Check on HSA Contributions
Like 401(k) contributions, adding money to your HSA reduces your taxable income for the year while reducing what you owe in taxes. And, HSA contributions are tax deductible.
*For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.