You can increase your withholdings by submitting a new W4 to your employer have extra withheld every pay period.
If you are single with no dependents there is not a lot of credits or deductions available.
But some things you can do to lower your tax liability for next year would be:
- Maximize your retirement savings. You can contribute up to $23,000 to a 401K or $7,000 to an IRA. This will defer your taxes on the income until you withdrawal the funds.
- Contribute to a FSA through your employer.
- Do a home energy project. Doing something like replacing windows, doors or insulation can reduce your tax liability by up to $1,200. If you invest in solar or wind energy home improvement, the credit is 30% of the cost of the project with no cap. It can reduce all of your tax liability for the year and can be carried forward until used all up.
- Buy a new or used hybrid or electric vehicle. This credit can be worth up to $7,500 for new vehicles and $4,000 for used. For a single individual there is an income limit of $150,000 for a new EV and $75,000 for an used EV.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
