Tax planning isn’t just something to think about during tax season—it’s a year-round activity that can help you reduce your tax bill in the future. In this post, we’ll discuss some strategies to help you plan ahead and save money on your taxes next year.
Adjust Your Withholding
If you consistently owe taxes or receive large refunds, it may be time to adjust your withholding. Use the IRS Withholding Calculator to determine how much tax should be withheld from your paycheck throughout the year. This can help you avoid surprises at tax time and ensure that you’re not overpaying or underpaying your taxes.
Contribute to Retirement Accounts
Contributing to tax-advantaged retirement accounts like a 401(k) or an IRA can reduce your taxable income and help you save for the future. For 2024, the contribution limit for 401(k) accounts is $23,000 (or $30,500 for those aged 50 or older), while the limit for IRAs is $7,000 (or $8,000 for those 50 or older).
Maximize Deductions and Credits
Take full advantage of tax deductions and credits available to you. For example, make charitable contributions, invest in energy-efficient home improvements, or consider education expenses that might qualify for credits like the American Opportunity Credit.
Keep Good Records
Throughout the year, keep track of all tax-related documents, including receipts for charitable contributions, medical expenses, and business expenses. This will make tax season easier and ensure that you don’t miss out on valuable deductions.
Disclaimer
This content is for educational purposes only and does not constitute legal or tax advice. Please consult a tax professional for specific guidance. Noortax Service, Inc., established in 1999, can assist you with tax planning and preparing your tax return. Contact us today at www.Noortax.net or call us at 586-481-6134.
Need Help with Tax Planning?
If you need help planning your taxes for next year, Noortax Service, Inc. is here to assist. We’ve been helping individuals and businesses with their tax needs since 1999. Contact us at 313 873 5338 for professional and reliable tax services.
