4 Tips to Help You Save on Your 2024 Taxes
We’re a little more than six weeks out from the federal tax filing deadline, but it’s not too late to boost your tax advantages for the 2024 tax year. Origin’s Head of Planning Tyler Horn shared his top tips for lowering your tax bill and building your savings.
It’s Not Too Late to Contribute to Your IRA for 2024
If you recently received a year-end bonus, Q4 commission, or other income outside your regular paycheck and want to boost your retirement savings, you still have time to contribute to your IRA and have it count toward 2024 limits.
The IRS allows contributions to a traditional or Roth IRA for the previous tax year until April 15, 2025. The maximum contribution to all your IRA accounts is $7,000 for 2024, or $8,000 if you’re 50 or older. (These maximum contribution limits can change from year to year, so even if you think you might have maxed out your contribution, it’s worth checking again.)
If you qualify, contributing to a traditional IRA can help lower your taxable income for 2024, giving you an extra tax break while building your retirement savings.
Get a State Tax Break by Contributing to a 529 Plan
Are you saving for your child’s college education? Many states offer tax deductions or credits for contributions to a 529 College Savings Plan. These plans are accounts that provide tax-free growth when used for qualified education expenses, making them a smart way to save.
Some states — including Colorado, Illinois, and Pennsylvania — have particularly generous tax benefits, so check your state’s rules to see how you can maximize your savings while lowering your state tax bill.
Offset Gains and Reduce Taxes with Tax-Loss Harvesting
If you have stocks or other investments in a taxable brokerage account, review your portfolio to see if any investments are currently worth less than what you paid for them. Selling these assets at a loss — which is known as “harvesting” — can help offset capital gains from other investments, thus reducing your tax liability.
You can offset up to $3,000 of ordinary income per year, and any additional losses can be carried forward to future years. This strategy can help you manage taxes efficiently while rebalancing your portfolio.
File your taxes for free with Origin
As an Origin member, you can file your taxes for free thanks to our partnership with Column Tax.
Origin’s simple, straightforward filing comes with a Maximum Refund Guarantee and an Accuracy Guarantee, so you can file with confidence.
