The end of the year doesn’t mean the end of tax-saving opportunities. Even after December 31st, you can still take action and lower your 2024 tax bill. Here are three smart moves to keep in mind:

1. Maximize Pension Contributions

You can still make contributions to certain accounts after the year ends that count toward 2024.

• Traditional or Roth IRAs 
• SEP IRAs or Solo 401(k)s 
• Health Savings Accounts

Not only can these reduce your taxable income, but they also help you save for the future! Deadlines for contributions generally are the extended due date of your tax return, but speak to an advisor since this year is a bit different than usual.

2. Make Strategic Elections

The IRS allows some flexibility when it comes to certain tax elections. After year-end, you can:

• Opt in or out of Sec. 179 & bonus depreciation for assets placed in service in 2024. This would speed up the recognition of your deductions and could reduce your 2024 US taxes.
• File Form 8832 to change your business’s tax classification retroactively for 2024. This allows you to change if your company is treated as a pass-through or a separate corporate entity. These changes can have significant impacts on how your 2024 taxes shape up.
• Take advantage of state-specific elections like PTEP, allowing you to benefit beyond the standard $10K state deduction allowance.

3. Apply for SSNs or ITINs

If you’re planning to claim dependents or take advantage of credits, make sure you have the proper identification in place:

• Apply for Social Security Numbers (SSNs) for your children or dependents. While your child must have been a U.S. citizen in 2024, you can still apply for their SSNs. You need to have them issued before the extended date of your 2024 tax filing.
• Apply for Individual Taxpayer Identification Numbers (ITINs)* for non-residents or others without SSNs.

These applications allow you to qualify for valuable tax benefits when filing your 2024 return.

It’s Not Too Late!

Even though the ball has dropped and 2025 has started, the window for smart tax planning is still open. Taking these steps now could mean significant savings when it’s time to file.

*https://www.irs.gov/individuals/international-taxpayers/obtaining-an-itin-from-abroad