With tax forms finally making their ways to us … as mentioned here on Friday… the focus can now change to saving strategies for 2024! Yes there are still many that we can implement now, to help last years taxes!
So lets go!
SEP – Simplified Employee Pension – Use this technique to offset any income you may have from a non W-2 Source… Even if you do have W-2 Income from another source… Can put back approximately 25% of the Adjusted Income (Net After expenses!) – This technique can be used until your filing including extension, all of the others below will need to be completed by regular filing deadline.
Deductible IRA – If you do not have a retirement plan, pension plan or any other qualified plan, you may be able to do a deducible IRA, which means you can write off the contribution against your income – Here are the reasons we do not like non deductible IRAs – Let your tax professional or your software give you the amount if any you may do, just want you to be aware!
Spousal IRA – Similar to the prior point, within certain parameters (mostly income) a Spouse may be able to make a deductible IRA – Not a big fan or after tax contributions to IRA’s – same as above!
HSA – Health Savings Account – With a high deductible health plan – Ask your health Provider if you qualify, similar to the IRA above, you can deduct BUT better than the IRA, using for health related expenses (broad uses here!) no taxes when distributed – Pro – Tip – We like to accumulate the HSA for future use i.e. during later years of life
Itemization – While you may have been a standard non-itemizer the last many years due to the gigantic standardized deduction… You MAY be able to get over the standard deduction ! Health expenses of all kinds, donations, all added with our $10k State and local tax deduction may get you there!
Loan Forgiveness – If you forgave a loan, you MAY want to check into writing that off! Here is the IRS statement. This is complicated, just trying to jog for ideas here! Be aware, you will need good records and the forgiveness and tax write off for you …. will trigger income for the recipient of that forgiven loan! Make sure you are all filing taxes correctly- mismatches are fairly easy for the IRS to pick up on!
Have a Great “Tax savings for last year!” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: AI created the splash image. All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
