The start of the holidays is also a reminder that you have only a few weeks left until the start of the next tax season. It should start end of January next yearwhen the Internal Revenue Service begins accept and process returns for fiscal year 2024.

Taxpayers are required to file their returns and pay their fair share of taxes unless their income falls below the standard deduction amounts. Those with higher incomes must pay taxes. However, you can reduce your tax burden by following a few tips.

ALSO READ: Calculating Your Federal Tax Bill Using Updated IRS Tax Brackets

Tips to follow before the end of the year to reduce the taxes you will pay in 2025

There are several steps you can take to reduce your tax bill. For example, if you have access to your retirement plans, such as a 401(k), 403(b) or 457, you still have time contribute to reduce the amount you owe in income tax.

You can also donate money to reduce your tax bill. This year, you’re allowed to give anyone up to $18,000 without having to report it to the IRS for gift tax purposes.

Health checks and purchases can also be deducted when filing your tax return, We therefore recommend that you keep all your receipts.

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How much tax should you pay to the IRS? Tax rates for 2025

Every year, The IRS sets tax rates or percentages of taxes paid based on a person’s taxable income. This is defined as any income, earned or unearned, subject to federal taxes.

Your tax rate depends on your filing status. For tax year 2024, which is due in 2025, here are the tax rates:

To reduce their tax bill, taxpayers can either take the standard deduction that applies to them or itemize their deductions.

If personal deductions exceed the amount of the standard deduction, the taxpayer receives a greater benefitbecause this further reduces their taxable income and puts them in a lower tax rate, meaning they can pay less tax.

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