Tax Day 2024: Last-Minute Deductions You Can Still Claim Before April 15

With Tax Day 2024 falling on April 15, there’s a narrow window to take actions that can meaningfully reduce your 2023 tax bill — or in some cases, your 2024 estimated tax. Several deductions and contributions can be made right up to the filing deadline, giving procrastinators a genuine last-minute opportunity.

Here’s a practical checklist of what still matters in the days before April 15.

1. Make a 2023 IRA Contribution (Deadline: April 15)

This is the most powerful last-minute move available. The IRS allows you to make IRA contributions for the prior tax year up until the filing deadline.

2023 IRA limits:

• Under 50: $6,500
• 50 and older: $7,500

You have three options:

Traditional IRA (potentially deductible): If you’re not covered by a workplace retirement plan, your traditional IRA contribution is fully deductible regardless of income. If you are covered by a workplace plan, deductibility phases out at $73,000–$83,000 (single) and $116,000–$136,000 (MFJ) for 2023.

Roth IRA (not deductible, but grows tax-free): Not a tax break today, but the best long-term shelter. Phase-out starts at $138,000 (single) and $218,000 (MFJ) for 2023.

Backdoor Roth: If you exceed Roth income limits, contribute to a non-deductible traditional IRA and then convert it to Roth.

A fully deductible $6,500 traditional IRA contribution at the 22% bracket saves $1,430 in federal taxes — and can be made in minutes through any major brokerage.

2. Make an HSA Contribution (Deadline: April 15)

Like IRAs, Health Savings Account (HSA) contributions for 2023 can be made up until April 15, 2024. To contribute to an HSA, you must have been enrolled in a High-Deductible Health Plan (HDHP) during 2023.

2023 HSA contribution limits:

• Self-only coverage: $3,850
• Family coverage: $7,750
• Catch-up (55+): additional $1,000

HSA contributions are triple tax-advantaged: they reduce your taxable income now, grow tax-free, and are tax-free when withdrawn for qualified medical expenses. An HSA contribution is one of the most efficient tax-reduction moves available.

3. Claim the Student Loan Interest Deduction

If you paid interest on federal or private student loans in 2023, you can deduct up to $2,500 — even if you take the standard deduction. This is an above-the-line deduction that reduces your AGI directly.

2023 phase-out ranges:

• Single: $75,000 – $90,000 MAGI
• Married Filing Jointly: $155,000 – $185,000 MAGI

You should receive Form 1098-E from your loan servicer showing the interest paid. Payments resumed in October 2023, so most borrowers have only 3 months of interest to deduct for 2023 — but it still counts.

If you’re managing your loan payments going forward, the student loan calculator can help you see how different repayment plans affect your total interest paid and the annual deduction you’ll generate.

4. Educator Expense Deduction: $300 Per Teacher

If you’re a K–12 teacher, counselor, principal, or classroom aide who worked at least 900 hours in the 2023 school year, you can deduct up to $300 of out-of-pocket classroom expenses. Two eligible educators filing jointly can deduct up to $600.

Qualifying expenses include books, supplies, computer equipment, and software for classroom use. COVID-19 protective items (masks, sanitizer, air purifiers) also qualify.

This deduction is small but real — and it requires no itemizing.

5. Self-Employment Deductions (Still Time to Calculate)

If you had self-employment income in 2023, several deductions reduce both your income tax and your self-employment tax:

Self-employment tax deduction: You can deduct 50% of your self-employment tax as an above-the-line deduction.

Self-employed health insurance: Premiums you paid for yourself, your spouse, and dependents are fully deductible — including dental and vision.

SEP-IRA contribution: Self-employed individuals can contribute up to 25% of net self-employment income (max $66,000 for 2023) to a SEP-IRA. This contribution can be made up to the filing deadline, including extensions.

Home office deduction: If you use part of your home exclusively and regularly for business, you can deduct a proportional share of rent/mortgage, utilities, and insurance. The simplified method allows $5 per square foot up to 300 square feet ($1,500 maximum).

6. Review Estimated Tax Payments

If you owe more than $1,000 in taxes and didn’t have enough withheld through your paycheck, you may face an underpayment penalty. The penalty for 2023 is based on the IRS interest rate (which has been elevated due to inflation-era rate hikes).

Strategies to avoid this in 2024:

• Adjust your W-4 to increase withholding — see understanding your paycheck for how withholding is calculated
• Make quarterly estimated tax payments (April 15, June 17, September 16, January 15)
• Ensure withholding covers at least 100% of last year’s tax liability (or 110% if income exceeds $150,000)

What Doesn’t Have a Last-Minute Workaround

Some deductions that people try to claim last-minute don’t actually work:

• Charitable donations must be made by December 31, not April 15. A check dated January 1 doesn’t count for 2023.
• Home improvements generally don’t create a deduction (only energy credits for specific upgrades, which must be made before year-end).
• Medical expenses are deductible only if paid in 2023 — you can’t prepay 2024 medical bills and deduct them on 2023 taxes.

Filing an Extension: Buying Time Without Avoiding Payment

If you can’t file by April 15, file Form 4868 to get an automatic 6-month extension to October 15, 2024. However:

• You must pay any estimated tax owed by April 15 to avoid late payment penalties (0.5% per month)
• An extension is not an extension to pay — only to file

The paycheck calculator can help you estimate your 2024 take-home pay so you can adjust withholding and avoid owing at next year’s Tax Day.

Last-Minute Deduction Checklist

Action	Deadline	Potential Tax Savings
2023 Traditional IRA contribution	April 15, 2024	Up to $1,430 (22% bracket)
2023 HSA contribution	April 15, 2024	Up to $847–$1,705 (22%)
Claim student loan interest	File by April 15	Up to $550 (22% bracket)
Educator expense deduction	File by April 15	Up to $66 (22% bracket)
2023 SEP-IRA contribution (self-employed)	April 15 (or extension deadline)	Varies by income

Key Takeaways

• IRA contributions for 2023 can be made until April 15, 2024 — one of the most powerful last-minute levers
• HSA contributions for 2023 are also available until April 15 (if you had HDHP coverage)
• Student loan interest deduction of up to $2,500 is above-the-line and available to standard deduction takers
• Educators can deduct up to $300 ($600 MFJ) of classroom expenses with no itemizing required
• Filing an extension gives until October 15 to file — but not to pay
• Charitable donations and medical expenses must have been paid in 2023 to count