Maximize Your Tax Refund: Last-Minute Strategies for 2024 from Extreme Investor Network

As tax season heats up, many are looking for ways to minimize their tax burden or secure a larger refund for the year ahead. However, if you’re one of the many W-2 employees earning a paycheck, your options may seem limited. At Extreme Investor Network, we believe that knowledge is power when it comes to personal finance, so let’s explore a few key strategies that could help you maximize your tax opportunities before the April 15 deadline.

Timing is Everything

Once the calendar flips to January 1, the opportunities to make tax-saving moves for the previous year shrink dramatically. As advised by certified financial planner Catherine Valega, there are "very few" strategies left if you’re looking retroactively to claim deductions or credits. So, it’s best to seize the opportunities that are still on the table.

Here are three actionable strategies you can implement to optimize your tax situation before it’s too late:

1. Supercharge Your Health Savings Account (HSA)

If you haven’t hit the contribution limits for your Health Savings Account for 2024, there’s still time to do so before the tax deadline. The limits for 2024 are up to $4,150 for individuals and $8,300 for families.

But this isn’t just a way to save on medical costs—it’s an incredible tax advantage. Any money you contribute to your HSA is tax-deductible, which means it effectively reduces your taxable income for the year you contribute. To qualify, you must have a high-deductible health plan (HDHP), making it a dual-purpose strategy: save for healthcare and lower your tax bill.

“The HSA is easy. If you are eligible, fund it and take the deduction,” asserts CFP Thomas Scanlon.

2. Make a Pre-Tax IRA Deposit

With the April 15 deadline looming, now is the time to consider contributing to a traditional Individual Retirement Account (IRA). You can contribute up to $7,000 for 2024, with an additional $1,000 catch-up contribution if you’re 50 or older.

By making a pre-tax contribution, you may qualify for a deduction, reducing your adjusted gross income (AGI). However, keep in mind that taxes will come into play when you start making withdrawals from this account in retirement.

“A traditional IRA simply delays taxation,” says Andrew Herzog, an associate wealth manager. This means your money can grow tax-deferred, a strategic advantage for long-term investors.

3. Don’t Overlook the Spousal IRA

For married couples, the spousal IRA may be one of the best-kept secrets in tax planning. This unique option allows non-working spouses to contribute to their own IRA, provided the working spouse has sufficient income.

Together, couples can maximize their tax-advantaged retirement savings by contributing to separate traditional or Roth IRAs. Not only will this help in retirement planning, but both contributions can potentially qualify for tax deductions, effectively spreading your family’s tax savings.

Conclusion

While the window for retroactive tax reductions is narrowing, you still have options to enhance your tax strategy before filing. At Extreme Investor Network, we emphasize the importance of being proactive with your financial planning. By exploring every opportunity, from HSAs to IRAs, you can make substantial strides toward a more favorable tax outcome.

Don’t wait until the last minute! Take action today to secure your financial future. If you have any questions or need personalized advice, our experts are here to help guide you down the path of financial success.

Explore more insights and strategies from Extreme Investor Network to empower your financial journey.