It’s never too early to start planning for 2024! Planning ahead can put more cash in your pocket instead of overpaying the IRS. Avoid the last-minute tax panic and set yourself up for success with these tax savings tips.
- Take advantage of your company’s Health Savings Account (HSA). With tax-deductible contributions and tax-free withdrawals for qualified healthcare expenses, HSAs can help you save money on taxes. HSAs can also be used as a retirement savings account since money you don’t need can be left until age 65.
- Contribute to retirement accounts. If you have yet to retire, contributing to a 401(k), IRA, and other retirement plans can help lower your 2024 taxable income. Max out employer contributions first, followed by any additional funds into IRAs. In 2024, you could set aside up to $23,000 of your compensation ($30,500 if you are 50 or older). The limit on IRA contributions is $7,000 ($8,000 if you are 50 or older).
- Gift it away. Currently, you can gift up to $17,000 (2023) or $18,000 (2024) to as many people as you want without paying gift taxes. This includes gifts of cash, property, or investments. Choose the split gift election and you and your spouse can give away as much as $34,000 (2023) or $36,000 (2024) annually to each person.
- Support your favorite causes. Make a donation of money or goods to a tax-exempt organization, such as a charity. You’ll need to keep a record of your gift and you may need an appraisal to determine the value of some property.
- Get organized! The new year is the perfect time to organize your records. Prepare now to avoid missing information such as stock purchases and sales when tax time rolls around.
When you are ready to get started, please contact us to discuss your specific situation and to set up a personalized tax plan.
