Maximize Your Returns: Tax Tips for the 2024 Tax Year

The start of tax season can feel daunting, but it doesn’t have to be. Whether you’re a small business owner, a freelancer managing multiple income streams, a senior navigating tax deductions, or a veteran with unique tax benefits, there are plenty of strategies to simplify the process and maximize your returns.

Every tax season introduces several noteworthy changes and opportunities. This guide will help you stay informed, take advantage of available deductions, and approach your tax filing with confidence. Set yourself up for success by following these actionable tips tailored to your unique circumstances.

Essential Tax Planning Tips for Small Business Owners and Freelancers

Tax planning is vital if you’re self-employed or run a small business. By being proactive, you can take advantage of opportunities to reduce your taxable income.

Track Every Expense: Keep detailed records of business-related expenses throughout the year. These might include office supplies, internet costs, advertising, or travel expenses.

Don’t Overlook Home Office Deductions: If you work from home, the home office deduction can help. Deduct a portion of your rent, mortgage interest, utilities, or insurance that applies exclusively to your work area.

Set Aside Taxes Quarterly: Unlike employees who have taxes withheld from their paychecks, freelancers and small business owners must pay estimated taxes quarterly. Failing to do this can result in hefty penalties, so mark your calendar for quarterly deadlines (April 15, June 16, and September 15 in 2025 and January 15, 2026).

Tax Deductions and Credits for Seniors, Solo Agers, and Those with Special Needs

Many taxpayers over 65 or with special needs qualify for unique deductions and credits. Understanding these benefits ensures you don’t leave money on the table.

The Standard Deduction for Seniors: If you’re 65 or older, you’re eligible for a higher standard deduction. For the 2024 tax season, seniors can deduct an additional $1,950 if single or head of household or $1,550 for married taxpayers or Qualifying surviving spouse. This automatic boost can significantly lower your taxable income. 

Medical Expense Deductions: Medical costs exceeding 7.5% of your adjusted gross income (AGI) can be deducted if you itemize your taxes. Eligible expenses include prescription medications, hospital stays, home health services, and even specialized medical equipment.

Assistance for Those with Disabilities: Taxpayers with disabilities or their caregivers may benefit from the Disability Tax Credit (DTC). Additionally, certain accessibility improvements to your home, such as wheelchair ramps or grab bars, may qualify as deductible expenses. 

Tax Strategies for Veterans

Veterans bring unique contributions to their communities and are often eligible for special tax considerations.

Exclude Disability Benefits: Any payments you receive from the Department of Veterans Affairs (VA) for service-related injuries or ailments are not counted as taxable income.

Utilize Military Pension Tax Advantages: Retired veterans receiving military pensions may benefit from state-level tax breaks. Many states offer partial or full tax exemptions for military retirement income.

Take Advantage of Education Credits: The funds you receive via tuition assistance or under the GI Bill- whether you used the Montgomery GI Bill, the Post-9/11 GI Bill or the Forever GI Bill – are not taxable. Seek out further education credits like the Lifetime Learning Credit or the American Opportunity Credit to reduce your tax bill further.

Navigating Tax Law Changes

Every tax year comes with updates, and 2024 was no exception. Here’s what’s new and how it impacts you.

Standard Deduction Increase: For 2024, the IRS has slightly increased the standard deduction to keep up with inflation. Single filers and married people filing separately can now deduct $14,600, while head of household can deduct $21,900 and married couples filing jointly and surviving spouses can deduct $29,200. 

Energy Efficiency Credits: Homeowners who make energy-efficient upgrades, like installing solar panels or upgrading insulation, could qualify for the residential energy credit. Check if your improvements meet eligibility criteria for this eco-friendly incentive.

Additional Child Tax Credit: The standard Child Tax Credit (CTC) provides up to $2,000 in tax reductions for each child who meets qualifying requirements. The CTC can only reduce your tax to zero. If you owe less than $2,000 in taxes, you don’t get any unused portion of the credit back as a refund.

The Additional Child Tax Credit allows the parent to receive up to $1,700 of the $2,000 CTC per child as a refund for 2024.

Take the Stress Out of Tax Season

The key to a smoother tax season is preparation. By understanding the deductions, credits, and new regulations that apply to you, you can maximize your refund and minimize stress.

If you’re feeling overwhelmed, consider working with a trusted CPA or leveraging user-friendly tax tools. With the right assistance, even the most complex tax situations can become manageable.

Make 2025 the year you file with confidence—and get the refund you deserve.