Time Sensitive! 5 Ways To Reduce Your Taxes

Cut Your Taxes Before the Deadline Hits!

Tax season is here, and the clock is ticking. Whether you’re an individual filer, a freelancer, or a small business owner, the pressure to legally reduce your tax bill before the filing deadline is real. While some tax strategies require year-long planning, others can be implemented even at the last minute. If you haven’t finalized your return yet, there’s still time to take action. Here’s a deep dive into five proven ways to minimize your taxes before the deadline—and possibly boost your refund.

1. Organize Every Receipt and Unlock Hidden Deductions

One of the most overlooked steps in tax preparation is the simple act of collecting and reviewing receipts. Many people forget that everyday expenses can add up to substantial tax savings when properly documented and claimed. Look beyond the obvious and consider categories such as:

• Charitable contributions: Donations to recognized organizations, whether monetary or in goods (like clothing or electronics), are deductible. Even mileage driven for charity work may qualify.

• Medical and dental expenses: If your unreimbursed expenses exceed a certain percentage of your income, they could be partially deductible. Think about prescriptions, medical devices, and doctor visits.

• Work-related costs: This includes professional development, union dues, certifications, travel expenses, and supplies you personally paid for.

• Home office expenses: If you work from home and have a dedicated workspace, you may qualify to deduct a portion of your rent, utilities, and internet.

Careful documentation is critical. Maintain dated receipts, payment confirmations, and written explanations for each deduction to ensure IRS compliance.

2. Take Advantage of Education Tax Breaks

Education-related tax benefits can be extremely valuable, especially if you or your dependents were enrolled in school during the tax year. You may qualify for:

• The American Opportunity Tax Credit (AOTC): Worth up to $2,500 per eligible student for tuition, books, and fees for the first four years of higher education.

• The Lifetime Learning Credit (LLC): Worth up to $2,000 per tax return, this credit applies to graduate school, non-degree courses, and ongoing professional education.

• Student loan interest deduction: If you paid interest on qualified student loans, you could deduct up to $2,500, even if you don’t itemize.

To claim these credits, you’ll need Form 1098-T (for tuition) and 1098-E (for student loans). Be sure the educational institution is accredited and meets IRS requirements.

3. Contribute to Retirement Accounts for an Instant Tax Break

You can still reduce your taxable income by contributing to eligible retirement accounts—even up to the final tax filing day. These contributions are “above the line,” meaning they reduce your adjusted gross income (AGI) directly, which can lower both your tax liability and increase eligibility for other deductions and credits.

Here’s what you can still do:

• Traditional IRA: For 2024 filings, you can contribute up to $7,000 ($8,000 if you’re 50 or older) before the April 2025 deadline. Contributions may be fully or partially deductible based on your income and workplace coverage.

• Roth IRA: While contributions are not tax-deductible, they grow tax-free, and the deadline is the same.

• SEP IRA: If you’re self-employed, you can contribute as much as 25% of your compensation (up to $69,000 for 2024) and reduce your taxable income significantly.

• Health Savings Account (HSA): Contributions to HSAs are deductible and can be made up until the filing deadline. They also grow tax-free and can be used for qualified health expenses.

These last-minute contributions are one of the few legal ways to retroactively reduce your taxes, making them especially powerful tools.

4. Check if You’re Eligible for the Earned Income Tax Credit (EITC)

One of the most valuable—but most frequently missed—tax benefits is the Earned Income Tax Credit (EITC). Designed for working individuals and families with moderate to low income, the EITC can significantly reduce your tax liability and may even result in a refund larger than the taxes you paid.

Here’s how it works:

• Eligibility is based on your income, filing status, and number of dependents.

• For tax year 2024, the maximum credit can exceed $7,000 for a family with three or more qualifying children.

• Even individuals with no children may qualify for a smaller EITC amount.

The EITC is refundable, meaning if your credit is more than the tax you owe, you receive the difference as a refund. This credit alone has lifted millions of families out of poverty each year. Use the IRS EITC Assistant tool online to see if you qualify—it only takes a few minutes and could result in a substantial return.

5. Seek Expert Guidance Before Filing

Tax law is complicated. Even with online filing software and guides, you may be missing out on credits and deductions simply because you’re unaware they exist. A tax professional or Certified Public Accountant (CPA) can:

• Spot opportunities for deductions that software may miss

• Help you file correctly if you have multiple income sources or investments

• Correctly handle freelance, rental, crypto, or stock trading income

• Avoid costly mistakes that could trigger an IRS audit

• Strategically plan for the next tax year

While there is a cost for professional services, the savings they find—and the peace of mind they offer—can far outweigh the expense. If you have complex income, are self-employed, or experienced a major life change (marriage, divorce, new child, etc.), hiring a professional may be a smart investment.

Don’t Wait — The Tax Filing Deadline is Fast Approaching

The closer the deadline gets, the harder it is to make adjustments that could save you money. The U.S. federal tax filing deadline is typically April 15, but always confirm with your local tax authority for any updates or extensions.

Now is the time to:

• Finalize your deductions

• Max out contributions

• Claim every credit you qualify for

• File with confidence, not panic

By acting now, you can potentially save hundreds or even thousands of dollars and eliminate last-minute filing stress. Whether you’re aiming to reduce what you owe or increase your refund, every small step matters.

Start today—and keep more of your hard-earned money where it belongs: in your hands.