Strategies to Reduce Your 2024 Taxes or Boost Your Refund, Experts Say

Understanding Your Options During Tax Season

As the 2025 tax season unfolds, many taxpayers are exploring strategies to reduce 2024 taxes or boost their refund. Particularly for W-2 employees, options may be limited. Despite this, there are still a few strategies left for taxpayers to consider before the April 15 tax deadline.

Maxing Out Your Health Savings Account (HSA)

One option is to contribute to your health savings account (HSA). If you’ve yet to reach your 2024 HSA contribution limit, you have until April 15 to deposit money and score a much-needed tax break. For 2024, the HSA contribution limit is $4,150 for individual coverage and $8,300 for family plans. However, you must have an eligible high-deductible health insurance plan to qualify for contributions.

Making Pre-Tax IRA Deposits

Another last-minute tax strategy is making a pre-tax deposit to your individual retirement account (IRA). The April 15 deadline also applies to IRA contributions for 2024, which can total up to $7,000, plus an extra $1,000 for investors aged 50 and older. Depending on your earnings and workplace retirement plan, you may be able to claim a deduction for these contributions. Keep in mind, regular income taxes and required withdrawals apply to the account later.

Exploring the Spousal IRA Option

For married couples filing jointly, a spousal IRA is a potential tax-saving strategy. A spousal IRA is a separate Roth or traditional IRA for nonworking spouses. This option allows married couples to max out a pre-tax IRA for both spouses, assuming the working spouse has sufficient income. It’s possible to claim a deduction for both deposits. However, it’s crucial to balance these decisions with long-term financial and tax planning goals.