As the year comes to a close, savvy workers know there’s still time to make smart financial moves that can pad their tax refund come next season. While the tax code is complex, taking a proactive approach now can translate into real savings. From retirement contributions to charitable giving, here are six strategies to help you boost your refund before the clock strikes midnight on December 31.

1. Max Out Retirement Contributions

One of the simplest ways to reduce your taxable income is to contribute more to your retirement accounts. If you have a 401(k) through your employer, contributions are deducted pre-tax, meaning less of your income is taxed. For 2024, the contribution limit is $22,500 (or $30,000 if you’re over 50).

Key Deadline: December 31 for 401(k) contributions.
IRA Option: You have until April 15, 2025, to contribute up to $6,500 (or $7,500 if 50+) to a traditional IRA for this tax year.

2. Boost Charitable Contributions

Charitable giving not only benefits the causes you care about but also reduces your taxable income if you itemize deductions. Whether you’re donating cash, gently used clothing, or household items, every contribution to a qualified organization counts.

Pro Tip: Make sure to document all donations with receipts or confirmation letters from the charity. Some employers also offer donation matching programs, doubling your impact—and potentially your deduction.

3. Fine-Tune Your W-4 Withholding

If you’ve noticed big fluctuations in your refund or tax bill in recent years, your W-4 withholding might need an adjustment. The IRS recommends reviewing your withholding annually, especially if you’ve experienced life changes like marriage, having a child, or taking on additional income streams.

Action Plan: Use the IRS Withholding Estimator to see if you’re on track and submit an updated W-4 to your employer if needed. This can help you avoid overpaying taxes, giving you more cash flow throughout the year.

4. Maximize FSA and HSA Accounts

For workers with Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs), these accounts offer a triple win: pre-tax contributions, tax-free growth, and tax-free withdrawals for eligible expenses.

• FSAs: Most plans have a “use it or lose it” rule, so ensure you spend those funds on qualifying expenses by year-end.
• HSAs: These accounts roll over, but maxing out contributions ($3,850 for individuals; $7,750 for families) by December 31 can significantly reduce your taxable income.

5. Deduct Work-Related and Side Hustle Expenses

If you have unreimbursed work expenses or earn income from a side hustle, you may be eligible for additional deductions. Self-employed individuals can claim expenses like home office costs, mileage, and equipment purchases.

Why It Matters: Even gig economy income qualifies for deductions. Keeping detailed records of expenses can help you lower your taxable income.

6. Offset Gains with Tax-Loss Harvesting

If your investment portfolio includes underperforming stocks or cryptocurrency, now’s the time to consider tax-loss harvesting. Selling assets at a loss can offset gains from other investments, and if losses exceed gains, you can deduct up to $3,000 against your taxable income.

Final Reminder: Ensure all sales are completed by December 31 to qualify for this year’s tax filing.

Get Ahead Before the Year Ends

As you wrap up 2024, don’t leave money on the table. Implementing these strategies now can make a significant difference when tax season arrives. Organize your financial documents, review your income, and make those last-minute adjustments to maximize your refund—and your financial future.

Would you like to dive deeper into any of these strategies or learn how they apply to your unique situation?