Taxes & Deductions
Maximize your tax savings and minimize your liability before year-end
Tax Savings Calculator
Calculate potential tax savings from year-end deductions
Quick Tips
- Max out your 401(k) before year-end ($23,000 limit)
- Make charitable donations before December 31
- Consider HSA contributions ($4,150 individual/$8,300 family)
- Review itemized vs standard deduction ($14,600 single/$29,200 married)
Comprehensive Tax Planning Guides
Dive deep into specific tax strategies with our detailed guides. Each guide provides actionable advice, calculators, and expert insights to help you minimize tax liability and maximize savings.
Year-End Tax Checklist
Complete essential tasks before December 31 to optimize your tax situation and reduce liability.
Read Guide →What You Can Still Deduct
Comprehensive guide to current tax deductions and how to maximize them for substantial savings.
Read Guide →How to Maximize Refunds
Strategic approaches to increase your refund including refundable credits and smart withholding.
Read Guide →Business Owner Tax Prep
Essential strategies and deductions for self-employed and small business owners to minimize tax liability.
Read Guide →Tax Law Changes
Stay informed about current tax laws, recent changes, and what you need to know for year-end planning.
Read Guide →Year-End Tax Planning Strategies
Smart tax planning before December 31 can significantly reduce your tax bill and increase your refund. Understanding available deductions and credits allows you to make strategic financial moves that benefit your bottom line.
Time-Sensitive Tax Deadlines
Many tax strategies must be executed by December 31 to count for the current tax year. Don't miss these opportunities to reduce your tax liability.
Tax-Loss Harvesting
One of the most powerful year-end tax strategies for investors:
- Sell investments trading at a loss to offset capital gains
- Use up to $3,000 in losses to offset ordinary income
- Carry forward excess losses to future tax years
- Be aware of the wash-sale rule (30-day repurchase restriction)
- Consider tax-loss harvesting in taxable accounts only
Strategic Timing of Income and Deductions
Control when you receive income and pay deductible expenses:
- Defer income to next year if beneficial
- Accelerate deductions into the current year
- Consider bunching deductions to exceed standard deduction
- Time year-end bonuses strategically
- Prepay state and local taxes if advantageous
Year-End Tax Checklist
- ☐ Review your projected tax liability for the year
- ☐ Ensure adequate tax withholding or estimated payments
- ☐ Harvest investment losses to offset gains
- ☐ Max out retirement account contributions
- ☐ Make charitable donations before December 31
- ☐ Pay deductible expenses before year-end
- ☐ Review eligibility for tax credits
- ☐ Organize receipts and documentation
Common Tax Deductions
Standard vs. Itemized Deductions
For 2024, the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly. Consider itemizing if your deductions exceed these amounts:
- Mortgage interest on up to $750,000 of debt
- State and local taxes (SALT) capped at $10,000
- Charitable contributions
- Medical expenses exceeding 7.5% of AGI
- Casualty and theft losses from federally declared disasters
Above-the-Line Deductions
These deductions reduce your adjusted gross income regardless of whether you itemize:
- Traditional IRA contributions
- Health Savings Account contributions
- Self-employed health insurance premiums
- Student loan interest (up to $2,500)
- Educator expenses (up to $300)
- Self-employment tax deduction
Valuable Tax Credits
Tax credits provide dollar-for-dollar reduction in your tax bill:
- Child Tax Credit ($2,000 per qualifying child)
- Child and Dependent Care Credit (up to $3,000 for one dependent, $6,000 for two or more)
- Earned Income Tax Credit (for low to moderate income workers)
- American Opportunity Tax Credit (up to $2,500 for education)
- Lifetime Learning Credit (up to $2,000 for education)
- Saver's Credit (for retirement contributions)
- Residential Energy Credits (for home improvements)
Retirement Account Contributions
Maximize tax-advantaged retirement savings:
- 401(k) contributions: $23,000 limit ($30,500 if age 50+)
- IRA contributions: $7,000 limit ($8,000 if age 50+)
- SEP IRA for self-employed: up to 25% of compensation
- Solo 401(k) for self-employed: up to $69,000 total
- HSA contributions: $4,150 individual, $8,300 family
Consider Professional Help
Tax laws are complex and change frequently. A qualified tax professional can help you identify opportunities specific to your situation and ensure compliance with all regulations.
Business Owner Tax Strategies
If you own a business, additional year-end planning opportunities include:
- Section 179 equipment deduction (up to $1,220,000)
- Bonus depreciation for qualified property
- Qualified Business Income (QBI) deduction (up to 20%)
- Deferring income and accelerating expenses
- Reviewing business entity structure
- Making retirement plan contributions for employees
Record Keeping and Documentation
Proper documentation is essential for claiming deductions:
- Keep receipts for all deductible expenses
- Maintain mileage logs for business travel
- Document charitable contributions with receipts
- Save investment statements showing cost basis
- Organize medical expense receipts
- Store documents for at least three years