One tool that might be useful to you is the Roth IRA. Making contributions to a Roth IRA will not benefit your tax return immediately unless you qualify for a Saver's Credit, but it is a good long-term vehicle for tax savings.
The main benefit to a Roth IRA is that it can grow over time tax-free. Then, when you take qualified distributions from the account at retirement, you do not pay tax on the distribution. None of the earnings are subject to income tax. Additionally, you can withdraw your contributions to the account at any time without any tax or penalty, so if you need the money in an emergency or just want to take out the contribution, then you can do so freely.
The best time to contribute to a Roth IRA is while your income is lower. There are income limits that prevent everyone from being able to make a contribution to Roth IRAs.
Take a look at the following TurboTax help article to learn more:
What's the difference between a traditional IRA and a Roth?
Additionally, if you have a retirement plan available to you at your job, be sure to contribute to it. This is especially important if the company matches any portion of your contribution. Don't leave free money on the table.
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