Maximizing Your Tax Breaks: A Guide for the Average Family in 2024

Monday, 11 March 2024, 23:00

Learn how five major tax breaks can significantly reduce taxes for a typical American family in 2024. Discover the impact of contributions to 401(k), traditional IRA, Health Savings Account (HSA), standard deduction, and Child Tax Credit on the family's tax bill. By utilizing these strategies, families can save up to $1,576 on taxes for 2024, making it crucial to optimize tax-deductible accounts.
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Maximizing Your Tax Breaks: A Guide for the Average Family in 2024

Maximizing Tax Breaks for 2024

Want to cut your tax bill in 2024? See how these five commonly used tax breaks can reduce taxes for the average family.

Overview

  • 401(k) contributions
  • Traditional IRA contributions
  • Health savings account (HSA) contributions
  • Standard deduction
  • Child tax credit

How It Works

  1. 401(k) contributions: Family can save by contributing $3,729 to a 401(k) account.
  2. Traditional IRA contributions: Savings of $7,000 can be deducted from family's income.
  3. Health savings account (HSA) contributions: Potential savings of $2,400 through regular HSA contributions.
  4. Standard deduction: Family can deduct $29,200, reducing taxable income.
  5. Child tax credit: Family would reduce taxes by $2,000 for one child under 17.

Utilizing these deductions can result in saving $1,576 on taxes for 2024 compared to not using any tax-deductible accounts.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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