Year-End 2024 Tax Tips

Hello, savvy tax planners! With the year quickly wrapping up, it's a perfect time to think about smart tax strategies. Here are some easy tips to help you make the most of your finances as we head into the new year.

Plan Ahead

Start by taking a good look at your current tax situation. Are you expecting changes next year, like a different tax bracket? Planning now can save you money, but remember, most opportunities end on December 31. Don’t procrastinate!

Delay Income

If you expect to be in a lower tax bracket in 2025, consider delaying some income. You could push back a year-end bonus or postpone receiving payments. This way, you'll tackle those taxes next year instead of now.

Speed Up Deductions

On the other hand, think about paying deductible expenses like mortgage interest, state taxes, or medical bills this year rather than in early 2025. This could give your 2024 tax return a nice boost.

Give to Charity

Feeling generous? When you donate to charity and itemize deductions, you can typically deduct between 20% and 60% of your income. If you exceed these limits, the excess can be carried into the next five years.

Adjust Withholding

Think you might owe taxes? Increasing your withholding for the rest of the year can help cover any shortfall. The best part is that these amounts are considered paid throughout the year, not just when they're deducted from your paycheck.

Boost Retirement Savings

Planning for the future? Contributing to a traditional IRA or 401(k) can lower your taxable income. For 2024, you can save up to $23,000 in your 401(k) ($30,500 if you’re 50 or older) and $7,000 in IRAs ($8,000 if you’re 50 or older). You have until the end of the year for employer plans and until April 15, 2025, for IRAs. Remember, Roth IRAs work differently—contributions aren’t deductible, but withdrawals can be tax-free.

Take Required Distributions

If you’re 73 or older, remember your required minimum distributions (RMDs) from retirement accounts. Missing these can be costly—25% of the amount you should have taken (or just 10% if corrected quickly). Beneficiaries have rules too, so stay informed.

Consider Year-End Investments

While taxes shouldn't drive your investment choices, they matter. If you've profited from stocks, selling some losing ones can offset gains. You can also offset up to $3,000 of ordinary income with losses or carry them forward to future years.

These tips can help you wrap up 2024 with a solid financial foundation. By taking a proactive approach, you can start the new year with confidence. Happy planning!

IMPORTANT DISCLOSURES Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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