Simple Tax Saving Strategies for W2 (Salaried) Employees

Maximize Retirement Contributions

Contribute the maximum allowable amount to your 401(k) or IRA to reduce taxable income and grow savings tax-deferred.

Claim Dependent Care Credit

Use the Child and Dependent Care Credit for expenses related to childcare, which lowers tax liability directly.

Health Savings Account Contributions

Contribute pre-tax dollars to an HSA to pay for qualifying medical expenses and reduce taxable income.

Itemize Deductions Instead of Standard

If total itemized deductions exceed the standard deduction, itemizing can save more on taxes through expenses like mortgage interest and charitable donations.

Utilize Educational Tax Credits

Apply for the American Opportunity or Lifetime Learning credit to reduce tax owed for qualified educational expenses.