How to save money on your taxes

  • Maximize tax credits and deductions
  • Contribute to retirement plans and health savings accounts
  • Consider harvesting losses from capital gains

(NewsNation) — Before you sit down to do your taxes, make sure you’re doing all you can do to save money when filing.

Here are some of the top ways to save:

Take advantage of tax credits

When filing your taxes, make sure you’re taking any credits available to you. Some common tax credits include the earned income tax credit, the child tax credit and the child and dependant care tax credit.

You may also be able to get tax credits for buying an electric vehicle, making clean energy investments in your home, buying a home for the first time, or buying health insurance on the marketplace.

Take all deductions (even if you don’t itemize)

Whether it’s better to itemize your deductions or use the standard deduction will depend on individual finances. Either way, you’ll want to take all of the deductions available to you.

For those taking the standard deduction, you can claim business uses of your home or car, alimony payments, student loan interest and teaching expenses, among other deductions.

Give to charity

Charitable donations can be deducted from your taxes as long as you itemize your deductions. In general, you can deduct up to 60% of your adjusted gross income by donating to qualified charities, usually registered as 501(c)(3) organizations. If you give more than $250 to one charity, you will need a receipt and large, non-cash donations about $500 require additional documentation.

Save for retirement

Contributions to an employer-funded retirement account, a traditional IRA or Roth IRA can be deducted from your taxes. The amount that can be deducted depends on your income and rollover contributions don’t qualify

Use your Health Savings Account

If you have a high-deductible health insurance plan and qualify for a Health Savings Account, those contributions can be deducted from your taxes.

Save money for your kids’ college education

Contributions to 529 college savings accounts are not deductible on federal taxes but part or all of the contributions may be deductible at the state level. Earnings from 529 plans aren’t taxed and there is no tax when the money is paid out, as long as it’s used for qualified educational expenses.

Harvest losses

Loss harvesting is selling investments at a loss to offset capital gains taxes. If you have more than $3,000 in excess losses, the remainder can be carried forward into the next tax year.

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