Contribute to a retirement account
A surefire way to lower your tax liability? Contributing to a retirement account! Contributions to both IRA and traditional 401(k) accounts can be easily deducted from your taxable income. Deducting them will reduce the amount of money you owe in federal taxes.
You’ll get another benefit by contributing to a retirement account. Your funds will grow tax-free, meaning you’ll be able to enjoy a financially secure retirement. The managing director for accounting firm CBIZ MHM, John Maceovsky, says that there’s no such thing as “too late.” In case you’ve missed this year, make sure you’ll check it next year.