LITTLE ROCK, Ark. — It's officially tax season. You can now file taxes with a deadline of April 18th. We put together a few easy things you can do to save some money on your taxes any year.
Put money in your 401(k).
Less taxable income means less tax. The IRS doesn't tax what you put directly from your paycheck into a 401(k). For 2021, the limit was $19,500 per year into an account. FOR 2022, this rises to $20,500. These retirement accounts are usually sponsored by employers and if your employer matches any of your contribution, you'll get free money.
Don't forget about your HSA.
If you have a high-deductible health care plan, you may be able to lighten your tax load by contributing to a health savings account. These are tax-exempt accounts you can use to pay medical expenses. For 2021, the limit to contributions was $3,600 for self-only coverage and up to $7,200 for family coverage. For 2022, you can contribute up to $3,650 for self-only coverage and up to $7,300 for family coverage.
Don't have an HSA? Utilize your FSA, if you have one.
The IRS lets you funnel tax-free dollars from your paycheck into your flexible spending account every year. If your employer offers a flexible spending account, it could be used to help lower your tax bill. In 2021, the contribution limit was $2,750. For 2022, the limit is $2,850. You'll likely have to use the money during the calendar year, but some employers allow some carry-overs.
See if you are eligible for the earned income tax credit.
If you earned less than $57,000 in 2021, the earned income tax credit might be worth looking into. Depending on your income, marital status and how many children you have, you might qualify for a tax credit of up to almost $7,000.