April 15th is just around the corner, but if you reside in Georgia, the tax deadline has been extended until May 1st because of hurricane relief. If you haven’t started thinking about tax planning, now is the time! At Moore Invested we know tax season can feel overwhelming, but with a little preparation, you can make the process smoother and even save some money in the process. Here are a few key steps to take before the deadline.
- Maximize Retirement Contributions
One of the simplest ways to reduce your taxable income is by contributing to your retirement accounts. You can still contribute to a traditional IRA or Roth IRA for the 2024 tax year up until the May 1st deadline. If you have a SEP IRA or Solo 401(k) and are self-employed, you may have even more flexibility. Maximizing these contributions can lower your tax liability while helping you build long-term wealth.
- Take Advantage of Tax Credits and Deductions
Don’t leave money on the table! Make sure you’re utilizing all eligible deductions and credits, such as:
- Education credits (American Opportunity Credit, Lifetime Learning Credit)
- Child tax credits
- Energy-efficient home improvement credits
- Medical expense deductions (if expenses exceed 7.5% of your AGI)
If you itemize your deductions, ensure you’ve tallied up mortgage interest, property taxes, charitable donations, and any eligible work-related expenses.
- Utilize State Specific Tax Credits – Georgia Film Tax Credits
Many states offer tax credits to encourage certain economic activities within their state. For example, Georgia utilizes film tax credits to incentivize the film industry to produce in its state. These credits are issued to the film companies and are available for purchase by Georgia taxpayers. Taxpayers may purchase current or prior-year tax credits based on availability. These can result in significant tax savings.
- Consider an HSA Contribution
If you have a Health Savings Account (HSA), you can still contribute for the 2024 tax year until May 1st, 2025. HSAs offer a triple tax advantage: contributions are tax-deductible, growth is tax-free, and qualified withdrawals are also tax-free. It’s a great way to reduce taxable income while saving for medical expenses.
- Check Your Withholding for 2024
Now is a good time to review your tax withholding for 2025. If you owed a large tax bill this year or received a big refund, you might want to adjust your W-4 with your employer to better align with your actual tax liability. This can help avoid surprises next year.
- Don’t Miss the Filing Deadline (or File for an Extension!)
If you’re not ready to file by May 1st, don’t panic—you can request an extension. However, an extension only gives you more time to file, not to pay. If you expect to owe taxes, be sure to estimate and submit your payment to avoid penalties and interest.
Need Help? We’re Here for You!
Tax planning doesn’t have to be stressful. Our team at Moore Invested is here to help you navigate your financial landscape and create a strategy that maximizes your savings and long-term financial goals. If you have any questions or need guidance with your investments, reach out to us before the deadline approaches!
Let’s make tax season work for you—not against you.