Tax-Saving Moves to Start the New Year Right
As we enter 2025, it’s the perfect time to review your financial situation and implement tax-saving strategies for the upcoming tax season. For Maryland residents and businesses, understanding state and federal tax laws can make a significant difference in reducing tax liabilities. At AK & Associates, we’re here to guide you through these strategies to help maximize your savings.
Let’s explore some effective tax-saving moves you can implement now.
1. Maximize Retirement Contributions
You can still contribute to certain retirement accounts for the previous tax year until the federal tax deadline in April 2025.
- Traditional IRA: Contributions may be tax-deductible, lowering your taxable income for 2024.
- Roth IRA: While contributions are not tax-deductible, qualified withdrawals are tax-free, making it a great long-term strategy.
- Employer-Sponsored Plans (401(k), 403(b)): Check if you’ve maxed out contributions for 2024. If not, ensure you contribute the full amount for 2025 to take advantage of employer matching and tax benefits.
2. Organize Charitable Contributions
Charitable donations made in 2024 can still provide tax benefits for your 2024 return.
- Maryland State-Specific Benefits: Charitable donations may also qualify for Maryland-specific credits or deductions.
- Documentation: Ensure you have receipts or proof for all donations. Contributions to donor-advised funds can provide long-term tax benefits.
3. Optimize Tax Loss Harvesting
If you’ve experienced investment losses in 2024, now’s the time to use them strategically.
- Offset Capital Gains: Losses from investments can offset gains, reducing your overall tax burden.
- Carryforward Opportunities: If losses exceed gains, you can carry them forward to reduce future tax liabilities.
4. Consider Tax-Deferred Investments
Tax-deferred annuities and other accounts allow your investments to grow without immediate tax implications.
- Growth Without Taxes: Earnings are only taxed upon withdrawal, helping you save more in the short term.
- Retirement Planning: Tax-deferred investments can provide a steady income stream during retirement while optimizing current tax benefits.
5. Review Deductions and Credits
Maryland taxpayers should take advantage of both state and federal deductions and credits.
- Business Expenses: If you’re a business owner, ensure you’ve tracked all eligible expenses, such as office supplies, equipment, or professional services.
- Home Office Deduction: Working remotely? You may qualify for this deduction.
- Mileage and Vehicle Expenses: Maryland residents using personal vehicles for business purposes can deduct mileage or actual vehicle expenses.
How AK & Associates Can Help
Navigating tax laws can be overwhelming, but our team is here to help. At AK & Associates, we specialize in Maryland-specific tax requirements and federal tax strategies. Here’s how we can assist you:
- Tax Preparation: Ensure your returns are accurate and maximize your deductions.
- Tax Planning: Develop a personalized plan to optimize savings for this year and beyond.
- Tax Audits: Get expert support if your taxes are reviewed by the IRS or Maryland tax authorities.
- Business Tax Returns: Tailored services for Maryland businesses to streamline the tax process.
- Individual Tax Returns: Comprehensive services to ensure compliance and savings.
With over 36 years of experience serving the Maryland community, we’re dedicated to making taxes stress-free, efficient, and tailored to your unique needs. Whether you're an individual, a small/medium business owner, our team of experts is here to provide personalized solutions and ensure your financial success.
Let us handle the complexities of tax preparation, planning, and compliance so you can focus on what matters most. Contact us today to schedule a consultation and see how we can help you achieve peace of mind this tax season and beyond!
Keywords: tax-saving strategies, year-end tax planning, tax deductions, retirement accounts, charitable donations, tax loss harvesting, tax-deferred annuities, tax preparation, tax planning, tax audits, business tax returns, individual tax returns
1 / 9 / 2025