Best Tax Tips to Save Money: 2024 Guide

10-12-24

As the year comes to an end, it’s time to focus on effective tax strategies that help reduce liabilities while ensuring compliance with updated IRS rules. Whether you’re an individual, small business owner, or investor, utilizing the right tax-saving opportunities can significantly improve your financial outlook.

360 Accounting Pro Inc: Personalized Tax Planning and Filing Services

At 360 Accounting Pro Inc, we specialize in personalized tax planning and filing services designed to maximize deductions and optimize your financial outcomes.

Key Tax Changes for 2024

Adjusted Tax Brackets

The 2024 federal income tax brackets have been adjusted for inflation. These changes impact income thresholds, so it’s crucial to review and plan your taxable income wisely.

Standard Deduction Increases

Single filers: $14,000 (up from $13,850)
Married filing jointly: $28,000 (up from $27,700)
Take advantage of the higher standard deduction if you’re not itemizing your taxes.

Limits on Contributions to Retirement Plans

401(k): Contribution limit is now $23,000 ($30,500 for those aged 50 and above).
IRA: Maximum contribution is $7,000 ($8,500 for individuals aged 50 or older).

Energy Efficiency Tax Credits

If you’ve made energy-efficient home improvements, you could qualify for tax credits extended under the Inflation Reduction Act.

Strategies for Personal Tax Savings

1. Maximize Retirement Contributions

Contribute as much as possible to tax-advantaged accounts like 401(k), IRA, or HSA to reduce taxable income and secure your future.

2. Harvest Tax Losses

Offset capital gains by selling underperforming investments. This is an excellent strategy for diversifying your investment portfolio.

3. Bunch Deductions

Consider bunching deductions such as charitable donations or medical expenses in one tax year to maximize your itemized deductions.

4. Stay Updated on Tax Credits

Ensure you’re claiming all available credits like the Child Tax Credit and Earned Income Tax Credit.

Small Business Tax Strategies

1. Leverage Section 179 Deduction

Reduce taxable income by deducting the cost of qualifying equipment and software purchased within the year.

2. Claim Home Office Deductions

If you work from home, claim a portion of expenses like rent, utilities, and maintenance.

3. Plan for Estimated Taxes

Avoid penalties by making timely quarterly payments. Use your previous year’s tax bill as a guide.

4. Utilize Business Tax Credits

Take advantage of credits like the Work Opportunity Tax Credit (WOTC) or the Research and Development (R&D) Tax Credit to reduce your business tax burden.

Common Tax Pitfalls to Avoid

Missing Deadlines: File before April 15, 2024 to avoid penalties.
Ignoring State Taxes: Stay informed about state-specific tax regulations.
Inadequate Recordkeeping: Keep organized records of income, expenses, and deductions to ensure smooth filing and audit preparation.

How 360 Accounting Pro Inc Can Help

At 360 Accounting Pro Inc, we provide:

Proactive Tax Planning: Tailored strategies to minimize tax liabilities.
Accurate Tax Preparation: Compliance with federal and state tax laws.
IRS Audit Support: Peace of mind during audits.
Customized Solutions: Expert services for real estate investors and small businesses.

Take Control of Your Taxes Today

Don’t let taxes overwhelm you. Work with 360 Accounting Pro Inc to simplify the process and maximize your savings. Contact us today to schedule a consultation and set yourself up for financial success in 2024!

Tags : Tax strategies 2024, tax planning, tax credits, retirement contributions, small business tax deductions, IRS audit support, 360 Accounting Pro Inc.