4 Easy Ways to Keep More of Your Money | Global News Avenue

While you can’t avoid paying taxes entirely, there are several strategies that can help you lower your tax bill taxable incomemaximize deductions and take advantage of deferred tax growth. These simple but effective “tax hacks” can make a big difference when it comes time to file your taxes.

You can lower your taxes with these smart moves.

1. Try to reap the tax benefits

If you had a profitable year in the stock market tax loss harvesting Can be an effective way to reduce taxable income.

“There are a few different things Americans can do to keep more of their money before Tax Day. If you’re an investor who made big gains by selling stocks, you can offset those investments by selling down investments. This is called Harvesting for tax losses can help you reduce your taxable income,” says Paul T. Joseph, an attorney, CPA, and founder of Joseph & Joseph Tax & Payroll in Williamston, Michigan.

2. Maximize your retirement accounts

Now is the time to focus on growing your retirement savings—especially given the tax benefits. Maximum amount allowed for donation 401(k) or Traditional IRA It can lower your taxable income and help you pay less tax. The annual 401(k) contribution limit is $23,500 in 2025, up from $23,000 in 2024. The annual IRA limit for 2024 and 2025 is $7,000.

“You have until April 15 of this year to contribute to a traditional IRA or Roth IRA to apply it to your 2024 tax year. You need to know how much you contributed in 2024 and then apply the remaining amount (up to the maximum limit) Contributions to a retirement plan can also help reduce taxable income,” Joseph said.

3. Contribute to a health savings account

Open and contribute health savings account is another way to lower your tax bill. A health savings account is a personal savings account that can be used for qualified medical expenses. Each contribution is funded by Pre-tax dollarsso you don’t pay income taxes on the money you put into a health savings account. Income also grows tax-free. But there’s a problem. You must have a high-deductible health plan to open a health savings account.

“Contributions can be deducted from your taxable income. This can help you keep more of your own money and potentially save money on future medical expenses,” Joseph advises.

4. Save for education with a 529 plan

one 529 plan Can help pay for education, including college and K-12 education. its growth is deferred tax, Withdrawals are tax-free when used for qualified education expenses.

“Another way people can keep more money before tax day is to fund a 529 plan or similar plan. This could be for the future education of their children or grandchildren. Most states allow a deduction for this at tax time Contributions to class plans,” Joseph said.

bottom line

These four tax tips can help you lower your 2025 tax bill. If you’ve had a good year in the stock market, you can use tax-loss harvesting to offset your gains. for one Health Savings Account (HSA) If you have a high-deductible health plan Reduce taxable income Save on medical expenses at the same time. For education savings, open a 529 plan and enjoy the benefits of deferred growth and tax-free withdrawals. Finally, maximize your retirement account contributions before the deadline to reduce your taxable income and secure your future. By utilizing these strategies, you can keep more of your money and lower your tax liability.