2024 Is Over, What Can I Still Do to Reduce My Tax Bill?
Many taxpayers assume that once the year ends, they have no control over their tax liability—but that’s not entirely true! Even after December 31st, there are still strategic moves you can make to reduce your tax bill before the filing deadline. Here are a few ways you might be able to maximize your tax savings before April 15th.
1. Maximize Your IRA Contributions
If you qualify, making contributions to a Traditional IRA can lower your taxable income. Contributions for the 2024 tax year can still be made between January and April 15, 2025, as long as you meet the income requirements for a deduction.
2. Take Advantage of Health Savings Accounts (HSAs)
If you have a Health Savings Account (HSA) and haven’t maxed out your contributions, now is the time to do so. For 2024, the contribution limits are:
- $4,150 for individuals
- $8,300 for families
- An additional $1,000 “catch-up” contribution if you’re age 55 or older
Like IRAs, HSA contributions made before April 15, 2025, can still count toward the 2024 tax year, reducing your taxable income dollar for dollar.
3. Explore State-Specific Tax Credits
While federal tax-saving opportunities after year-end are limited, many states offer last-minute tax benefits. For example, some states allow deductions or credits for charitable contributions made between January 1 and April 15. Be sure to check your state’s tax laws for any available opportunities.
If you’re an Ohio taxpayer, you may qualify for a dollar-for-dollar tax credit for donations made to a Scholarship Granting Organization (SGO). This credit allows:
- $750 for individuals
- $1,500 for married couples (if both contribute separately)
Unlike deductions, which reduce taxable income, this is a full tax credit—meaning a $750 donation reduces your tax bill by $750. Many alma maters have SGOs, making this an easy way to support education while lowering your tax liability.
4. Bonus for Business Owners: Set Up a Self-Employed Retirement Plan
If you’re a business owner and haven’t yet set up a retirement plan, there’s still time! Certain self-employed retirement plans, like SEP IRAs, allow contributions for the previous tax year up until October 15, 2025, if you file an extension. This is a great way to build your retirement savings while reducing taxable income.
Reducing Your Tax Bill in 2025
These last-minute tax-saving strategies can make a significant difference in your final tax bill. Make sure to review your options and talk to your tax advisor to see which strategies work best for you.
