Is Your Bank Holding You Back?
Got $1,000 in checking?
Thesesmart movescould help you reach your next big savings goal.
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A lower income means less money you pay to the government.
This doesnt include the amount your employer contributes to your plan.
You usually have until April 15 of the following year tomax out your IRA contribution.
The tax benefit phases out for people with higher incomes who are covered by an employer retirement plan.
Head to theIRS websitefor full details on these phase-out limits.
In 2024, theannual contribution limitis $4,150 for self-only coverage and $8,300 for family coverage.
People 55 and older can contribute an extra $1,000 as a catch-up contribution.
This can be a quick and easy way to reduce your tax burden before the end of the year.
Just remember: Your payroll and personal HSA contributions cannot exceed the annual limit when combined.
you’re able to leave funds in your HSA indefinitely because theyre not subject torequired minimum distributions.
The limit in 2024 is $3,200.
Have dependents aka children or elderly members of your household youre taking care of?
Why notsave money on child careand on your tax bill at the same time?
This account is an investment vehicle specifically built for educational savings.
We Dare You to Take Control of Your Debt
Up for a debt challenge?
In 10 days,these 10 practical stepscould help you get back on the right financial track.
Know Your Itemized Deductions
Several tax deductions are only available if you itemize.
Itemizing only makes sense if you have enough deductions to exceed the standard deduction which most people dont.
If you itemize your taxes, here are a few deductions that can help lower your tax bill.
Charitable contributions are tax-deductible if you itemize your deductions.
verify to track the estimated value of your contributions to save you time when you file.
You might also be able to deduct certain supplies, travel expenses, or meals and entertainment.
Take Advantage of Tax Credits
In certain scenarios, the IRS extendstax creditsto eligible taxpayers.
Tax credits count as an actual reduction of your total tax bill.
(Remember: Tax deductions reduce your taxable income.)
If the tax credit is refundable, youll get a refund if your tax credits exceed what you owe.
(College students and retirees with part-time jobs were looking at you.)
For details, check out the IRS Earned Income Tax Creditfact sheet.
The credit is worth up to $2,000 for single filers or $4,000 for married couples.
It might seem intuitive to keep your withholdings as low as possible to keep more of your paycheck.
Is Your Paycheck Not Going As Far As It Used To?
We get it.Everythingis more expensive than it used to be, but your paycheck hasnt kept up.
When money is tight,these resourceswill help nearly everyone.
Jamie Cattanach is a former contributor to The Penny Hoarder.
Rachel Christian is a Certified Educator in Personal Finance and a former senior staff writer for The Penny Hoarder.
