How to reduce your tax bill or boost your refund before the deadline

One of the first options is a pretax individual retirement account contribution, according to Mark Steber, chief tax information officer at Jackson Hewitt.

“They’re always very popular and it’s just good planning,” he said.

You have until the 2023 federal tax filing deadline, which could reduce your adjusted gross income, depending on your income and participation in a workplace retirement plan. For 2023, you can save up to $6,500, with an additional $1,000 for investors 50 and older.

“You get an immediate deduction” if you qualify, whether or not you list the tax breaks on your return, Steber said.

Of course, you can also consider a 2023 Roth IRA contribution. This doesn’t offer an upfront tax break, but the money grows tax-free.

“In general, if you’re in the 10% or 12% (tax) bracket, you’re probably better off putting money in the Roth IRA,” Tommy Lucas, certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida. , previously told CNBC.

There is also a lesser-known option for married couples filing jointly, known as a spousal IRA, which is a separate Roth or traditional IRA for non-working spouses.

“They’re underutilized,” said CFP Laura Mattia, CEO of Atlas Fiduciary Financial in Sarasota, Florida. “People don’t always think about them.”

Married couples can contribute up to the limit of each IRA, provided the working spouse has sufficient income. Of course, you’ll need to weigh your short- and long-term circumstances, including possible tax consequences, before making an IRA contribution, Mattia said.

You can also take advantage of a last-minute deduction with a 2023 Health Savings Account contribution before the tax deadline, which offers a “multitude of benefits” – assuming you have an insurance plan high-deductible disease, Steber said.

There are three tax breaks for HSAs: an upfront deduction for contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

You can deposit up to $3,850 for personal coverage only or $7,750 for a family plan for 2023. Investors aged 55 and older can save an additional $1,000.