Even though the end of the year has already happened, there are still some ways to reduce your taxes before tax time arrives. If you need to reduce your reportable income even more, here are some ways to still do it.
Contribute to Your Retirement Accounts
If you have an individual retirement account (IRA), you still have time to contribute up to the contribution limits until April 15, 2024, which is $6,500. If you are 50 or older, you can contribute another $1,000, bringing it up to a maximum of $7,500. Traditional IRAs let you claim a tax deduction for your contribution, which reduces your taxes.There are some exceptions as to who can deduct contributions to an IRA. NerdWallet says you cannot get a deduction if your workplace retirement plan covers you, if you are married and filing jointly, or if you have an adjusted gross income of $136,000 or more. Forbes says that the income limit is much higher if your spouse has an IRA from an employer and you do not. In that case, the deduction in 2023 will phase out between $218,000 and $228,000.
