Don’t Miss Out: Last-Minute Tax Strategies for 2024

Maximize Your Deductions Before the Year Ends!
​Time is running out to make the most of 2024’s tax-saving opportunities! Here are some essential strategies and insights to help you reduce your tax liability and keep more money in your pocket:

1. Max Out Retirement Contributions:
   • 401(k): The contribution limit for 2024 is $23,000. If you’re 50 or older, you can take advantage of the catch-up contribution, raising your limit to $30,500.
   • IRA: You can contribute up to $7,000. For individuals aged 50 and older, the limit increases to $8,000. Contributions to traditional IRAs may be tax-deductible, depending on your income and retirement plan coverage.
2. Boost Your Health Savings Account (HSA):
   • If you have a high-deductible health plan (HDHP), HSAs allow for tax-deductible contributions and tax-free withdrawals for qualified medical expenses.
   • Individual coverage: Contribute up to $4,150.
   • Family coverage: Contribute up to $8,300.
   • Catch-up contributions: Individuals aged 55 and older can contribute an additional $1,000. HSAs are a triple tax-advantaged tool—funds roll over year-to-year and can even be used in retirement.
3. Charitable Giving:
   • Donations to qualified charities can provide significant deductions. Consider cash donations, non-cash contributions such as clothing or household goods, or even donating appreciated securities to avoid capital gains taxes.
   • Ensure you keep proper documentation, especially for donations over $250, to comply with IRS requirements.
4. Harvest Tax Losses:
   • Review your investment portfolio to identify underperforming assets. Selling these investments before year-end can help offset taxable capital gains and reduce your overall tax liability.
   • Remember the $3,000 annual limit for deducting net capital losses against other income, with any excess carried forward to future years.
5. Prepay Deductible Expenses:
   • Prepaying deductible expenses such as mortgage interest, property taxes, or tuition fees could help you itemize deductions and maximize your tax benefits. This strategy is especially useful if you’re close to the standard deduction threshold.
6. Review Flexible Spending Accounts (FSAs):
   • If you have an FSA, check your balance and ensure you use the funds before the year’s deadline. Many plans have a “use-it-or-lose-it” policy, though some allow a small carryover or grace period.
7. Verify Withholding and Estimated Payments:
   • Check if you’ve paid enough in taxes through withholding or estimated payments to avoid penalties. Adjustments may be necessary if you’ve had significant changes in income, deductions, or credits.

Take action now to capitalize on these opportunities before the December 31 deadline. Proactive planning today can lead to significant savings tomorrow!

CTA: Need guidance? Contact RSK TAX AND CONSULTING, LLC for personalized year-end tax strategies. Together, we’ll ensure you keep more of your hard-earned money in 2024!

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