Want to Save Money on Your 2024 Taxes? Do These 8 Things Now, Finance Experts Say

1 | Make any final 401(k) contributions.

It’s always a good idea to put away money for retirement throughout the year. But according to Moira Corcoran, certified public accountant (CPA) and personal finance expert at JustAnswer, you can maximize your tax benefits by topping out your contributions up to $20,500.

“Maximizing contributions is important for taking full advantage of tax deferrals, ensuring long-term retirement security, and potentially meeting employer match thresholds in a 401(k), which is essentially ‘free money,’” she explains. “Additionally, contributions grow tax-deferred, meaning you won’t pay taxes on investment gains until you withdraw the funds in retirement.”

Are you self-employed and making SEP IRA contributions? Corcoran says you can contribute up to 25 percent of compensation or $61,000 (whichever is less).

2 | Max out your health savings account (HSA).

Retirement isn’t the only self-investment that can help your annual tax bill. If you have a high-deductible health plan (HDHP), ensuring you contribute the maximum allowable amount to your Health Savings Account (HSA) by the April tax filing deadline can also help.

“HSA contributions are triple tax-advantaged: They reduce your taxable income now, grow tax-free, and can be withdrawn tax-free for qualified medical expenses,” Rachel Richards, CPA and head of product at Gelt, tells Best Life. “Even if you don’t use the funds this year, they roll over indefinitely, functioning like a retirement account for healthcare."

3 | Offload certain investments.

Playing the markets doesn’t always pay off, but you can still make the most out of a bad situation. By selling any stocks that are at a loss, Corcoran says you can offset any capital gains and ordinary income.

“If you hold stocks or other investments that have declined in value, consider selling them to realize a capital loss,” she says. “Capital losses can be used to offset capital gains from other investments, potentially reducing your taxable income.”

Corcoran says if your capital losses exceed your capital gains, you can use the remaining losses to offset up to $3,000 of ordinary income per year (or $1,500 if married and filing separately).

“This strategy, known as tax-loss harvesting, can lower your overall tax liability and help you make the most of underperforming assets in your portfolio,” she explains. “Any unused losses beyond the $3,000 annual limit can be carried forward to future tax years, providing ongoing tax benefits.”

4 | Choose the right self-employment formation.

Taxes can be particularly tricky for people who don’t have traditional jobs. That’s why if you're self-employed, it’s important to make sure you're selecting the right business formation for yourself, says Annie Cole, EdD, money coach and founder of Money Essentials for Women.

“If you're a solopreneur making $100,000 or less, the LLC business structure is probably right for you,” she says. “However, if you make more than $100,000, it might make sense to switch to an S-Corp formation to save on self-employment taxes. Work with a CPA to discuss your options.”

RELATED: IRS Warns 20% of Taxpayers Don't Claim Credit.

5 | Delay your annual bonus.

Let’s be honest: Everyone looks forward to getting that extra chunk of change at the end of the year. But if you’re trying to bring down your tax bill for 2024, you might want to ask your employer if they can pay out your bonus in January instead of Dec. 31.

“This pushes any tax liability on the bonus into the next tax year,” explains Corcoran. “This strategy can be beneficial if receiving the bonus in the current year would push you into a higher tax bracket or result in a higher effective tax rate.”

She adds that by delaying the income, you may be able to maintain a lower tax liability in the current year while deferring the additional tax impact to the next year, allowing for better overall tax planning.

6 | Claim the residential energy credit.

Planning on going green with your home energy? Doing so could come with the added bonus of lowering your tax bill.

"Individuals who have been thinking about installing solar panels, a geothermal heat pump, or energy-efficient windows should do it before year-end to claim the Residential Clean Energy Credit,” suggests Richards. “The credit covers up to 30 percent of the cost of qualifying renewable energy installations. And not only does this reduce your tax liability, but it also lowers your energy bills for years to come."

7 | Look into making donations and consider skipping the standard deduction.

It’s not at all uncommon to opt for a standard deduction when preparing your taxes—especially if you’re trying to save time, energy, or money by doing the job yourself. However, Corcoran says to consider itemizing if you are close to the threshold by making charitable contributions.

“Itemizing deductions allows you to take a bigger deduction than the standard deduction—$12,950 for single filers, $25,900 for married filers, and $19,400 for head of household—which will help lower your taxable income,” she explains. “Make sure any contributions are made to 501c3 organizations.

Corcoran adds that itemizing your deductions allows you to claim eligible expenses like mortgage interest, state and local taxes (up to $10,000), and charitable donations.

“If these combined deductions exceed the standard deduction, you’ll reduce your taxable income more effectively,” she says. “Charitable contributions can be particularly helpful in pushing your total deductions over the threshold, especially if you strategically time larger donations to maximize tax benefits in years when you’re already close to itemizing. For example, making donations at year-end or ‘bunching’ contributions into a single year could help you qualify for itemizing.”

8 | Prepay deductible expenses.

If you have upcoming medical expenses, Richars says you might want to consider paying them before the end of 2024 if they potentially exceed the adjusted gross income (AGI) threshold for deductibility.

“Medical expenses that exceed 7.5 percent of your AGI are tax-deductible,” she tells Best Life. “By timing your payments strategically, you might be able to lower your taxable income. This is extremely useful for taxpayers who are close to the threshold but haven’t yet met it.”

She adds that individuals can also bundle any deductible expenses into a single tax year, making this a great way to maximize the impact of your deductions.