Summary
The article discusses tax strategies individuals can use before April 15 to potentially lower their tax bills for the previous year. These strategies include making contributions to retirement accounts, health savings accounts, and educational savings plans, as well as options for self-employed individuals to reduce taxable income.
Key Facts
- You can contribute to an IRA until Tax Day, and it may reduce your taxable income if it qualifies for a deduction.
- Health Savings Accounts (HSAs) have a contribution deadline by Tax Day, offering triple tax benefits: contributions deduct from income, tax-free growth, and tax-free withdrawals for medical expenses.
- Self-employed individuals can open a SEP-IRA or Solo 401(k) to decrease taxable income, with contributions deadlines coinciding with tax filing.
- Some states allow deductions for contributions to 529 college savings plans made before Tax Day.
- It's important to identify and claim all applicable deductions and credits to minimize tax liability.
