They also change from year to year. For , the limits are;. These contributions reduce your gross income by the contributed amount. You can also withdraw from an HSA to pay qualified medical expenses without incurring taxes, which makes this one of the most attractive tax-management strategies.
There are limits on how much you can contribute to your HSA. You may be able to save on taxes by asking your employer to delay paying the bonus until January. If the bonus would push your income into a higher tax bracket this year and you expect less income next year, this strategy makes considerable sense. Even if you will still be in the same tax bracket, you benefit by delaying the day you have to pay the taxes by a year.
If you itemize your deductions rather than taking the standard deduction, you can make a contribution to a charity to reduce your taxable income. You may be able to reduce taxes on your bonus to zero by asking your employer to make it a non-financial bonus. Now more than ever, your financial support is critical to help us keep our communities informed about the evolving coronavirus pandemic and the impact it is having on our residents and businesses.
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