Summer is a good time for some tax planning that could lower your 2024 tax bill. Since the passage of the Tax Cuts and Jobs Act, which increased the standard deduction, fewer people benefit from itemizing deductions. You can use this IRS Interactive Tax Assistant to find your 2024 standard deduction.
If it looks like your itemized deductions for the year will be close to or exceed your standard deduction, here are some ways to increase your itemized deductions and possibly lower your tax bill:
- Accelerate elective medical, dental, and vision care expenses into 2024.
- Beef up charitable donations to IRS-approved charities.
- Make your January 1, 2025 mortgage payment for 2024, and consider prepaying state and local income tax and property taxes due in early 2025. (But watch out for the $10,000 annual limit on the state and local tax deduction; $5,000 if you’re married and will be filing separately.)
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