8 Smart Year-End Tax Planning Tips for Better Financial Outcomes

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Davicino recommended starting with your income and possible deductions.

Examine your income sources, including salary, investments, and rental income, she said.

Ensure youve maximized deductions such as mortgage interest, student loan interest and state and local taxes.

These contributions can reduce taxable income and increase your long-term savings, said Davicino.

Speaking of retirement accounts, Davicino also suggested checking your required minimum distributions (RMDs).

If youre over the age of 72, youll need to be taking these to avoid penalties.

Youre never too young to prioritize your health.

The HSA contribution limits for 2024 are $4,150 for self-only coverage and $8,300 for family coverage.

Those 55 and older can contribute an additional $1,000.

The annual contribution limit in 2024 for FSAs was increased to $3,200.

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The IRS allows investors to deduct up to $3,000 in capital losses per year against ordinary income.

Remaining losses may be carried forward to offset gains in future years.

Makeyear-end charitable contributionsto eligible organizations and keep records for deductions, said Davicino.

But if you havent been, its not too late to start.

This strategy can help you avoid stress while reducing the risk of underpayment penalties from the IRS.

This ones particularly important if you work for yourself or run a business.

Fortunately, you could do this in several ways, one of which is to gift appreciated securities.