Tax Efficiency Audit
Find out if you're overpaying on taxes with our 10-question audit. Identify missed deductions, optimize your withholding, and get personalized tax-saving strategies.
What's your primary employment type?
The average American pays $16,615 in federal income taxes each year. But many pay more than necessary because they miss deductions, overlook tax-advantaged accounts, or fail to optimize their withholding.
This Tax Efficiency Audit evaluates your tax strategy to identify potential savings—from missed deductions to underutilized accounts—so you can keep more of what you earn.
🫙 The Tax Jar Strategy
Think of tax-advantaged accounts as different colored jars, each with special rules:
Pre-Tax Jar (401k, Traditional IRA): Money goes in before taxes, grows tax-free, taxed on withdrawal. Best if you expect lower taxes in retirement.
Tax-Free Jar (Roth IRA, Roth 401k): Money goes in after taxes, grows tax-free, no taxes on withdrawal. Best if you expect higher taxes later.
Health Jar (HSA): Triple tax advantage—deductible going in, tax-free growth, tax-free for medical expenses. The best tax deal in the tax code.
Common Tax Deductions Most People Miss
State and local taxes (SALT): Up to $10,000 in state income, sales, and property taxes.
Charitable contributions: Cash and non-cash donations. Don't forget mileage for volunteer work.
Medical expenses: If they exceed 7.5% of your AGI. Include mileage to appointments.
Student loan interest: Up to $2,500, even if you don't itemize.
Home office deduction: For self-employed, a significant deduction based on dedicated workspace.
Education credits: American Opportunity ($2,500) and Lifetime Learning ($2,000) credits.
Retirement contributions: 401(k), IRA, and SEP-IRA contributions reduce taxable income.
Tax-Advantaged Accounts Explained
401(k): 2024 limit is $23,000 ($30,500 if 50+). Employer match is free money.
Traditional IRA: $7,000 limit ($8,000 if 50+). May be deductible depending on income.
Roth IRA: Same limits as Traditional. Not deductible, but tax-free in retirement.
HSA: $4,150 individual, $8,300 family (2024). Triple tax advantage—the best deal available.
FSA: Up to $3,200 for healthcare, $5,000 for dependent care. Use-it-or-lose-it rule.
529 Plan: Tax-free growth for education. Some states offer deductions for contributions.
W-4 Optimization Tips
The goal: Get as close to $0 owed/refund as possible. A big refund means you gave the government an interest-free loan.
When to update your W-4:
- Marriage or divorce
- Birth or adoption of a child
- Buying a home
- Starting a side business
- Significant income changes
How to adjust: Use the IRS Tax Withholding Estimator at irs.gov. If you consistently get big refunds, reduce withholding. If you consistently owe, increase it.
Frequently Asked Questions
Take whichever is higher. The 2024 standard deduction is $14,600 (single) or $29,200 (married filing jointly). If your itemized deductions (mortgage interest, state taxes, charity, etc.) exceed these amounts, itemize. Otherwise, take the standard.