With tax season in full swing, many people are dreading their tax bills. While it may be too late for this year’s filing, there are plenty of things you can do in the upcoming year to save money on your return. Here are some tax help tips to lower your bill. 

What Are Some Ways I Can Lower My Tax Bill?

1. Deduct Student Loan Interest

Deductions are a great way to lower your taxable income, and most people are still repaying their student loans. In this case, you can deduct any interest on payments you made up to $2,500. To claim this deduction, you must meet specific eligibility rules. Your status can’t be married filing separately, and your modified adjusted gross income must be under the annual limit. 

2. Invest in Your 401(K)

Money that’s placed into a 401(K) retirement account isn’t taxed, so investing in your account helps reduce your taxable income and your tax bill by extension. The contribution limit for 2020 is $19,500, which is a $500 increase from the previous year. 

3. Make Charitable Contributions

Speaking of deductions, giving money to your favorite charitable organizations is another great way to lower your tax bill. You can also deduct the value of other items you donate, whether they are toys, clothing, or food. While giving to charity is a reward in itself, a lower tax bill is always a good thing. 

4. Time Tax-Deductible Expenses Correctly

Are you looking at dental work or another medical expense that is eligible for a tax deduction? Schedule it before the end of the year to maximize your tax savings. You can also do the same with mortgage payments; by making two in December, you’ll increase your savings even further.