Last-Minute Tax Strategies to Maximize Deductions Before April 15
Don’t miss out: Smart last-minute tax moves to boost deductions before April 15
The Economic TimesImage: The Economic Times
As the April 15 tax deadline approaches, taxpayers can still take steps to lower their tax bills. Organizing documents, maximizing deductions from retirement accounts, and considering state-specific benefits can lead to significant savings. Freelancers and business owners have additional options to enhance their tax planning.
- 01Organizing tax documents can streamline the filing process and help avoid missed deductions.
- 02Contributions to Health Savings Accounts (HSA) and Individual Retirement Accounts (IRA) can reduce taxable income.
- 03Freelancers can benefit from a SEP IRA, allowing substantial contributions.
- 04Certain states offer tax deductions for 529 plan contributions made by April 15.
- 05New tax deductions for 2025 include those for tipped income, overtime, senior deductions, and car loan interest.
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With the April 15 tax deadline approaching, taxpayers have several last-minute strategies to potentially lower their tax bills. Organizing essential documents such as W-2s, 1099s, and charitable receipts can simplify the filing process and help avoid surprises. Contributions to Health Savings Accounts (HSA) and Individual Retirement Accounts (IRA) can still be made to reduce taxable income, with limits of $4,300 for individuals and $7,000 for IRAs, increasing to $8,000 for those aged 50 or older. Freelancers and business owners can consider setting up a SEP IRA, allowing contributions of up to 25% of compensation, with a maximum of $70,000. Additionally, some states, including Georgia and Indiana, allow deductions for 529 plan contributions made by the tax deadline. Recent updates have introduced new deductions for tipped income, overtime, senior citizens, and car loan interest, which could provide further savings for eligible taxpayers.
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These tax strategies can significantly reduce the tax burden for individuals and families, providing more disposable income.
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