{"id":891,"date":"2025-02-27T16:46:07","date_gmt":"2025-02-27T16:46:07","guid":{"rendered":"https:\/\/www.sasscpas.com\/blog\/?p=891"},"modified":"2025-02-27T16:46:08","modified_gmt":"2025-02-27T16:46:08","slug":"it-may-not-be-too-late-to-reduce-your-2024-taxes","status":"publish","type":"post","link":"https:\/\/www.sasscpas.com\/blog\/index.php\/2025\/02\/27\/it-may-not-be-too-late-to-reduce-your-2024-taxes\/","title":{"rendered":"It May Not Be Too Late to Reduce Your 2024 Taxes"},"content":{"rendered":"\n<p><br>If you&#8217;re preparing to file your 2024 federal income tax return and your tax bill is higher than you&#8217;d expected &#8211; or your tax refund is smaller than you&#8217;d hoped \u2014 there might still be an opportunity to change it. If you qualify, you can make a deductible contribution to a traditional IRA until the filing date of April 15, 2025, and benefit from the tax savings on your 2024 return.<\/p>\n\n\n\n<p><strong>Who&#8217;s eligible?<\/strong><\/p>\n\n\n\n<p>You can make a deductible contribution to a traditional IRA if:<\/p>\n\n\n\n<ul><li>You (and your spouse if you&#8217;re married) aren&#8217;t an active participant in an employer sponsored retirement plan or<\/li><li>You (or your spouse) are an active participant in an employer plan, but your modified adjusted gross income (MAGI) doesn&#8217;t exceed certain levels that vary by filing status.<\/li><\/ul>\n\n\n\n<p>For 2024, if you&#8217;re married, filing jointly and covered by an employer plan, your deductible IRA contribution phases out over $123,000 to $143,000 of MAGI. For single filers or those filing as head of household, this phaseout range is $77,000 to $87,000. It&#8217;s only $0 to $10,000 if you&#8217;re married and filing separately. If you&#8217;re not an active participant in an employer-sponsored retirement plan, but your spouse is, your deductible IRA contribution phases out with MAGI between $230,000 and $240,000.<\/p>\n\n\n\n<p>Deductible IRA contributions reduce your current tax liability, and earnings within the IRA are tax-deferred. However, every dollar you take out will be taxed in full (and subject to a 10% penalty before age 59 1\/2, unless an exception applies).<\/p>\n\n\n\n<p>Roth IRA holders may also contribute to their accounts until April 15, though these contributions aren&#8217;t tax deductible, and some income-based limits apply. Withdrawals from a Roth IRA are tax-free if the account has been open for at least five years and you&#8217;re 59 1\/2 or older. Certain withdrawals are tax-free even before age 59\u00bd or within the five-year period.<\/p>\n\n\n\n<p><strong>How much can you contribute?<\/strong><\/p>\n\n\n\n<p>If eligible, an individual can make a deductible traditional IRA contribution of up to $7,000 for 2024. The contribution limit is $8,000 for those age 50 and up by December 31, 2024. If you&#8217;re a small business owner, you can establish and contribute to a Simplified Employee Pension (SEP) plan up until the due date for your return, including extensions. For 2024, the maximum SEP contribution is $69,000.<\/p>\n\n\n\n<p>For more information about IRAs or SEPs, including additional strategies to reduce your 2024 taxes, contact us or ask about it when we&#8217;re preparing your return. We can help you save the maximum tax-advantaged amount for retirement.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you&#8217;re preparing to file your 2024 federal income tax return and your tax bill is higher than you&#8217;d expected &#8211; or your tax refund is smaller than you&#8217;d hoped \u2014 there might still be an opportunity to change it. If you qualify, you can make a deductible contribution to a traditional IRA until the [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":893,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/891"}],"collection":[{"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=891"}],"version-history":[{"count":1,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/891\/revisions"}],"predecessor-version":[{"id":892,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/891\/revisions\/892"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media\/893"}],"wp:attachment":[{"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}