Tax tips before April 15 deadline
Tax tips before April 15 deadline: With the April tax deadline getting closer, there’s still time to make a few thoughtful moves that could help lower your tax bill and make filing less stressful. Even small steps, like getting organized or reviewing your options, can go a long way in helping you avoid surprises and make the most of available benefits.
There’s still time to contribute to accounts that may reduce your taxable income:
Health Savings Account (HSA): Contributions are tax-deductible, grow tax-free, and can be used tax-free for eligible medical expenses. For 2025, limits are $4,300 for individuals and $8,550 for families, as per a U.S. News report.
Individual Retirement Account (IRA): You can contribute up to $7,000, or $8,000 if you’re 50 or older, as long as contributions are marked for the prior year.
Yes, contributions can be made before the filing deadline.
What is the IRA contribution limit?
Up to $7,000, or $8,000 if you are age 50 or older.
How to Get Your Tax Documents Organized Quickly
Begin by gathering everything you’ll need, including W-2s, 1099s, investment statements, charitable receipts, and any business-related expenses, as per an NFP report. Having all your paperwork ready in one place can make the process smoother and reduce the chances of missing something important.Tax Tips: Deductions and Credits You Shouldn’t Overlook
If you made contributions to retirement accounts, paid for education, donated to charity, or invested in energy-efficient home improvements, you may qualify for deductions or credits. Reviewing these carefully can help you identify savings you might otherwise overlook.
HSA and IRA Contributions Explained for Tax Savings
There’s still time to contribute to accounts that may reduce your taxable income:Health Savings Account (HSA): Contributions are tax-deductible, grow tax-free, and can be used tax-free for eligible medical expenses. For 2025, limits are $4,300 for individuals and $8,550 for families, as per a U.S. News report.
Individual Retirement Account (IRA): You can contribute up to $7,000, or $8,000 if you’re 50 or older, as long as contributions are marked for the prior year.
Tax Planning Options for Freelancers and Business Owners
If you’re a freelancer, gig worker, or business owner, a SEP IRA could allow you to contribute up to 25% of your compensation, with a maximum of $70,000 for 2025. These plans can be set up and funded up until your tax filing deadline, or later if you file an extension.Can a 529 Plan Help You Save on State Taxes
While 529 contributions aren’t deductible on federal returns, some states allow deductions for contributions made up to April 15. These include Georgia, Indiana, Iowa (April 30), Kansas, Mississippi, Oklahoma, South Carolina, and Wisconsin.Should You Itemize or Take the Standard Deduction
Changes have increased the SALT deduction cap to $40,000 for those with modified adjusted gross incomes below $500,000. This means itemizing could now be more beneficial than taking the standard deduction for some taxpayers.New Tax Deductions You Need to Know This Year
Recent updates introduced new deductions that can be claimed, including:- Tipped income (up to $25,000)
- Overtime income (up to $12,500 or $25,000 for couples)
- Senior deductions (up to $6,000 or $12,000 for couples)
- Car loan interest (up to $10,000 for qualifying vehicles)
FAQs
Can I still contribute to an HSA for last year?Yes, contributions can be made before the filing deadline.
What is the IRA contribution limit?
Up to $7,000, or $8,000 if you are age 50 or older.
