Smart taxpayers don't just file returns—they maximize them. As the 2024 tax year comes to an end, understanding the right strategies and timing can mean the difference between a modest refund and getting back every dollar you're legally entitled to. Here's how to make sure you're not leaving money on the table.
Understanding the Landscape for the 2024 Tax Year
Before diving into specific strategies, it’s crucial to understand that the 2024 tax year (returns filed in 2025) brings significant changes to the tax code. These changes affect everything from standard deductions to tax credits, making it more important than ever to plan ahead.
Standard Deductions for the 2024 Tax Year (Returns Filed in 2025)
Single Filers (Unmarried or Married Filing Separately): $14,600
If you file taxes on your own, whether as an unmarried individual or as a married person filing separately, the Internal Revenue Service (IRS) has adjusted the standard deduction amount for the 2024 tax year.
Joint Filers (Married Couples Filing Together): $29,200
If you are married and filing jointly with your spouse, the IRS has set a different standard deduction amount for the 2024 tax year.
Head of Household: $21,900
If you qualify as a head of household, meaning you are an unmarried taxpayer who provides for a dependent, the IRS has set the following standard deduction amount for the 2024 year.
Strategy Spotlight: While these standard deductions are generous, don’t automatically assume they’re your best option.
Itemized Deductions: When They Make Sense
Let’s explore when itemizing might put more money back in your pocket. If your qualifying expenses exceed your standard deduction, itemizing could lower your tax bill.
Key deductions to track include:
- Mortgage interest: Track all payments on your primary and secondary homes.
- Student loan interest: Up to $2,500 annual, subject to income limits.
- Charitable contributions/charitable donations: Both monetary and non-cash donations count.
- Medical expenses: Those exceeding 7.5% of your adjusted gross income (AGI)
Strategy Spotlight: Keep detailed records throughout the year. Digital receipt tracking apps can simplify this process and ensure you don’t miss potential deductions.
Maximizing Tax Credits For The 2024 Tax Year
Unlike deductions, credits are particularly valuable because they can help to reduce your tax liability on a dollar-for-dollar basis. Here are key credits to consider:
- The Child Tax Credit provides up to $2,000 per qualifying child under the age of 17, for example, with up to $1,700 of that amount being refundable as of the 2024 tax year. .
- The Child and Dependent Care Credit provides up to $3,000 for one qualifying person (or $6,000 for two or more) if you pay to have someone care for your child or dependent while you're at work.
- The Earned Income Tax Credit (EITC) is aimed at low to moderate-income workers and can also provide a significant tax refund—even if you don't owe any federal income tax. For the 2024 tax year (returns filed in 2025) , the maximum EITC ranges from $649 if you don't have children and up to $7,830 if you have three children or more.
- Education credits such as the American Opportunity Credit and Lifetime Learning Credit can both help to cover education expenses.
Strategy Spotlight: Credits can be combined strategically. Work with a tax professional to ensure you’re maximizing all available credits for your situation.
