What it is: Contributions to traditional IRAs and 401(k)s are tax-deductible, reducing your taxable income.
Why it matters: A $6,500 IRA contribution could lower your tax bill significantly, especially if you’re in a high tax bracket.
How to claim it: Check IRS limits. In 2025, individuals under 50 can contribute up to $7,000; those 50+ get an extra $1,000 in catch-up contributions.
5. Charitable Contributions
