Tax Strategies for Extra Income in 2024?

sam callahan

Joined: Oct 28, 2002

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Suppose some income deferring and bonuses is resulting in an unusually large 2024 earned income.

What are your best strategies for limiting the associated tax hit?

Brian Earl Spilner

Joined: Aug 6, 2013

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1:56p, 6/6/24

AG

Increase 401k and HSA contributions if you're not already maxing them.

Any capital losses you could harvest?

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I bleed maroon

Joined: Oct 10, 1999

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In reply to Brian Earl Spilner • 2:00p, 6/6/24

AG

Brian Earl Spilner said:
Increase 401k and HSA contributions if you're not already maxing them.

Any capital losses you could harvest?

Yes, on the 401(k) and HSA. Maybe, on the capital losses. You can only offset up to $3000 of ordinary income with capital losses - the rest carry over to the next year.

bigtoneag

Joined: Sep 9, 2002

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2:21p, 6/6/24

AG

Set up a donor advised fund to take a bigger charitable contribution deduction in the year of the windfall.

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