Maximize Your Savings: Top 5 Tax Deductions You Shouldn’t Miss!

As tax season approaches, it’s the perfect time to ensure you’re making the most of your deductions. Tax deductions can significantly reduce your taxable income, meaning more money in your pocket! Here are the top five deductions you shouldn’t overlook:

1. Standard Deduction

For the 2024 tax year, the standard deduction is:

• $14,600 for single filers
• $29,200 for married couples filing jointly
  This deduction simplifies the filing process and can greatly reduce your taxable income. Assess whether itemizing your deductions might yield greater savings.

2. State and Local Taxes (SALT)

You can deduct up to $10,000 ($5,000 if married filing separately) for state and local taxes paid, including property taxes and state income taxes. Make sure to gather all relevant documents to claim this deduction effectively.

3. Mortgage Interest

Homeowners can deduct interest paid on their mortgage for their primary residence (and a second home, in some cases). This deduction can be substantial, especially in the early years when interest payments are highest. Keep records of your Form 1098 from your lender for easy access.

4. Charitable Contributions

Donating to qualified charities not only feels good but can also provide a tax benefit. Keep detailed records of all donations, whether cash or goods, and ensure you have receipts or acknowledgment letters for contributions over $250.

5. Retirement Contributions

Contributions to retirement accounts like a 401(k) or traditional IRA can reduce your taxable income. For 2024, you can contribute up to $23,000 to a 401(k) (or $30,500 if you're 50 or older). Traditional IRA contributions may also be deductible depending on your income and filing status.

Bonus Tip: Keep Detailed Records!

To maximize your deductions, maintain organized records of all eligible expenses. This will streamline your filing process and help if you’re ever audited.

Stay Informed! Tax laws can change, so it’s important to stay updated. Consider consulting a tax professional to ensure you’re taking full advantage of these deductions and any others that may apply to your situation.

At RSK TAX & CONSULTING, LLC, we’re here to help you navigate the complexities of tax season. Feel free to reach out with any questions or to schedule a consultation!

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