December 16, 2024
Why pay more taxes than you have to? We highly recommend tax planning now to reduce your 2024 tax liability and help minimize surprises come April. Here are a few tax tips to consider before the end of 2024.
1. Review your investment portfolio. Since capital loss carryforwards do not expire, you could use any large capital loss carryforwards you have as part of your overall tax strategy! Alternatively, if you have large capital gains for the current year, you should consider talking with your tax advisor and your investment advisor to see if tax loss harvesting would be beneficial in your overall tax strategy.
2. Ensure your investment and retirement accounts are well diversified (traditional and ROTH IRAs and 401ks) to reduce your tax liability for 2024. Depending on your income limits, you might be able to claim a tax credit or take a deduction for your contribution. You might also be able to make a traditional IRA contribution and take a deduction up until April 15, 2025.
3. Consider contributing to a health savings account (HSA) up to $4,150 for individual coverage and $8,300 for family coverage. You have up until the federal tax filing deadline of April 15th to contribute to your HSA for the prior year. This can be a great wealth building retirement tool especially for those who have minimal medical expenses each year.
4. Tax advantage of child tax benefits. If you have children, don’t miss out on potential tax credits and tax deductions such as the child tax credit, earned income tax credit, child and dependent care tax credit, and education tax credits and deductions. Each of these have different phaseout income and age limits so be sure to reach out to your tax advisor for assistance.
GRF Can Help
These tax tips are just a glimpse of how we can assist you. At GRF, we know the intricacies of the tax code can be very confusing. Let us work with you to develop a clear picture of your tax situation and a tax strategy to help minimize your tax burden not only for the current year but also for the future. Contact us online to set up a consultation, or reach out at the contact info below.
