LAS VEGAS (KTNV) — As 2024 nears its end, taxpayers are seeking effective strategies to reduce their tax liabilities. With just weeks left, financial professionals stress the importance of acting now to maximize deductions and take advantage of available tax benefits.
Brad Zucker of SMA Wealth Management highlights the significance of proactive tax planning.
“If you’ve got retirement accounts or are collecting a paycheck, you want to incorporate tax planning into your strategy,” he explains.
Zucker points to new opportunities for those saving for education through 529 plans. Under updated tax provisions, any unused funds can now roll over into a tax-free Roth IRA,
offering a valuable option for long-term savings.
He also cautions taxpayers against relying solely on standard deductions.
“Things like charitable giving have very little tax incentive,” he says. “But if you utilize a strategy called bunching—making a large charitable gift every two to three years—you can boost your tax deductions significantly.”
Maximizing retirement contributions is another key move to lower taxable income.
“Today, you can contribute up to $23,000 to an employer-sponsored 401(k),” Zucker says. “If you’re over 50, you can add an additional $7,500.”
The IRS also made adjustments for inflation this year, including changes to tax brackets and the standard deduction.
Understanding where your income falls within these updated brackets is crucial to calculating your tax rate.
“The tax brackets have now changed,” Zucker notes. “You want to identify where your income falls within the bracket, which will help determine your tax rate for the year.”
Zucker further advises taxpayers to take advantage of deductions for high-priced items like computers, smartphones, or office equipment.
For those with flexible spending accounts (FSAs), he urges spending unused balances now, as these funds will not roll over into 2025.
As the clock ticks toward the end of the year, acting quickly can make a big difference in your tax bill.
For more information and personalized guidance, visit IRS.gov or consult a trusted financial advisor.
