Income Under $40,000/year

1. Claim the Earned Income Tax Credit (EITC)

   • Especially if you have children or are a qualifying single filer.

2. Contribute to a Traditional IRA

   • May qualify for the Saver’s Credit.

3. Max Out Education Tax Credits

   • Use the American Opportunity Credit or Lifetime Learning Credit for school expenses.

4. Use Free Tax Filing Services

   • IRS Free File or VITA programs can help maximize your refund and reduce errors.

5. Track and Deduct Job Search or Relocation Expenses

   • If military or under specific exceptions.

Income Between $40,000–$150,000/year

1. Max Out 401(k) or Traditional IRA Contributions

   • Lowers taxable income and helps you build for retirement.

2. Use Health Savings Account (HSA) or Flexible Spending Account (FSA)

   • Tax-free contributions and withdrawals for medical expenses.

3. Itemize if It Exceeds Standard Deduction

   • Especially if you own a home, make charitable contributions, or pay high state taxes.

4. Claim Child and Dependent Care Credit

   • For childcare expenses while working or looking for work.

5. Offset Capital Gains with Tax-Loss Harvesting

   • Sell underperforming investments to reduce gains.

Income of $150,000+/year

1. Max Out Retirement Contributions 

   • 401(k), HSA, and non-deductible IRAs can all reduce taxable income.

2. Invest in Tax-Efficient Accounts

   • Use municipal bonds, ETFs, or tax-managed funds in taxable brokerage accounts.

3. Defer Income Strategically

   • Delay bonuses or business income to a lower-tax year when possible.

4. Work with a Tax Advisor

   • Plan for estate/gift strategies, and optimize deductions and credits.