Maximizing Your Tax Breaks: A Guide for the Average Family in 2024
Monday, 11 March 2024, 23:00
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
- 401(k) contributions: Family can save by contributing $3,729 to a 401(k) account.
- Traditional IRA contributions: Savings of $7,000 can be deducted from family's income.
- Health savings account (HSA) contributions: Potential savings of $2,400 through regular HSA contributions.
- Standard deduction: Family can deduct $29,200, reducing taxable income.
- 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.