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Tax Tips For Dummies
Five easy ways to save on your taxes.
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Quote
“The income tax has made more liars out of the American people than golf has.” - Will Rogers
Tax Tips For Dummies

*Knock knock knock
You look through the peep hole of your door. There stands a tall man with a white beard, he says he goes by Uncle Sam.
“Have you paid your fair share this year to the United States government?” Uncle Sam asks.
Being the good citizen you are, you nod and mention that you were just about to submit your taxes for 2024 (somewhat cussing him under your breath).
“Great, well here is a few tax tips for normies that you can use to knock down your tax bill a bit just in case it is needed.”
You thank Unc and close the door. Sitting down on your couch it reads…
5 Tax Tips For Normies
1) Use Your HSA
The Health Savings Account is one of the most bada** accounts when it comes to investing.
Contributions are tax-deductible, your earnings grow tax free, and withdrawals for medical expenses are tax-free.
Note that to have an HSA you have to have a high deductible health plan. Overall HSAs are awesome for saving on taxes. I recently did a post on how 91% of people use this account in the wrong way. Don’t be one of them, read it here.
2) Contribute To Your 401K
If you contribute to a traditional 401K your contributions can be deducted from your taxes, but you’ll have to pay taxes when withdrawing the money in retirement.
If you contribute to a Roth 401K (as I do) your contributions are with after-tax income, but you do not have to pay taxes on the gains later.
Depending on your situation you might prefer one of these accounts over the other. Here is an article breaking down the two accounts in more detail.
3) Deduct Donations
Donations of money or goods given to a tax-exempt organization can be deducted from your taxes. For example, the Red Cross, nonprofits, volunteer fire companies, and organizations that help manage public parks.
The trick here is you have to itemize your tax return if claiming charitable contribution.
This is a great place to say use a CPA!
4) Tax Loss Harvesting
It’s no breaking news, but the market has been in the red the last few months.
If you are sitting on a big loss, you can sell that stock/ETF and claim the loss (up to $3,000) on your taxes for 2025.
Here is a good write up on this tax loss harvesting and the wash sale rule by the man Money Cruncher, who is a CPA!
5) Invest In A Roth IRA/Backdoor
Last but not least is to invest in a Roth IRA or use a backdoor Roth IRA if you are over the income limit.
You will contribute after-tax money, but your gains will be tax free once you hit 59.5. The Roth IRA max contribution for 2025 is 7,000. Also, you have to invest the money in the Roth IRA after you make your contribution (I’ve heard horror stories of some who forgot to invest the funds).
If you are over the income limit for a Roth IRA, read this article for details on a mega backdoor Roth.
Conclusion
If you haven’t realized yet, I am not a CPA. This piece is simply a collection of basic tips I have pieced together from other articles, YouTube videos, and books.
Please consult with a CPA, especially if you have a unique situation with being married, having kids, owning a home, etc.
Have fun paying your “fair share.” ~ Cade
Don’t miss the next email 👇️
Cade’s Picks
Best & Worst Online Business to Start in 2025 - Youtube video by Deya ranking different online business including ecommerce, digital products, services, and more. She does a great job describing the pros and cons of each.
Humanoid Stocks - Chris Camillo dropped a tweet of his top 10 companies involved in the research and development of humanoid robots. These might be good to put on your watchlist.
What You Can Control - Vanguard dropped a good video that highlights the importance of focusing on what you can control. Figured someone needed to see given the recent market conditions.
Best Memes
Listening to an earnings call for a company I have 0.7 shares in
— Garcia Capital (@GarciaCap)
8:33 PM • Jan 29, 2025
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