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Tax season can be stressful, but it doesn’t have to be. With the right strategies, you can make next year’s tax season smoother and possibly even save some money. Here are some tax tips to help you prepare for 2024 taxes right now. And remember, if you ever get stuck or want personalized assistance, the team at NTRC Tax & Finance is here to help you.

10 Personal Tax Tips for 2024 Taxes

#1: Start Organizing Your Documents Early

Don’t wait until the last minute to gather your tax documents. Keep track of receipts, charitable donations, and any other tax-deductible expenses throughout the year. This way, you’ll be ready to go when tax season arrives.

#2: Contribute to Your Retirement Accounts

Maxing out your contributions to retirement accounts like a 401(k) or an IRA can lower your taxable income. Plus, it’s a great way to save for the future. Try to contribute as much as you can before the year ends. Make a plan for the year so that you can avoid a lump sum payment at the end of the year; this can be easier on the wallet.

#3: Use a Health Savings Account (HSA)

If you have a high-deductible health plan, consider contributing to an HSA. The money you put in is tax-deductible, grows tax-free, and can be withdrawn tax-free for medical expenses. It’s a triple tax advantage.

#4: Review Your Withholding for 2024 Taxes

If you got a large refund or owed a lot when you filed your taxes for 2023, it might be time to adjust your withholding. Use the IRS’s Tax Withholding Estimator to see if you need to make changes. This can help ensure you’re not surprised by a big bill or a smaller refund than expected.

#5: Take Advantage of Tax Credits

Tax credits can directly reduce the amount of tax you owe. Look into credits like the Child Tax Credit, Education Credits, or the Earned Income Tax Credit to see if you qualify. These can provide significant savings.

#6: Consider Itemizing Deductions

While many people take the standard deduction, itemizing can sometimes lead to bigger savings. If you have significant expenses like mortgage interest, state and local taxes, or charitable donations, see if itemizing makes sense for you.

#7: Plan for Any Life Changes

Life events like getting married, having a baby, or buying a house can affect your taxes. Plan ahead by understanding how these changes can impact your tax situation. It might open up new deductions or credits for you.

#8: Stay Informed on Tax Law Changes

Tax laws change frequently. Stay informed about any new laws that could affect your taxes. This knowledge can help you make smarter financial decisions throughout the year.

#9: Consider Professional Help for 2024 Taxes

If your tax situation is complex, it might be worth it to hire a professional. A good tax advisor can help you navigate the complexities of the tax code and take advantage of all the deductions and credits available to you.

#10: Make Tax Planning a Year-Round Effort

Finally, don’t treat tax planning as something you only think about once a year. By staying proactive and organizing your finances throughout the year, you’ll be in a much better position when tax season rolls around again.

Get Ahead of 2024 Taxes with Our Tax Tips Today!

By following these tips, you can reduce the stress of tax season and possibly save money. Start preparing now, and you’ll thank yourself later when the 2024 tax season comes around!

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