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Smart Money 101: 6 Tax Hacks Elon Musk Would Use (That Could Save You Thousands in 2024)
The Hidden Secrets of 2024 Tax Filing – Don’t Miss Out on These Money-Saving Tips!
Hello, Millennials & Gen Z!
Can you believe it’s already February 2025? The holidays feel like they just happened, and now we’re facing the reality of tax season!
Filing taxes might seem complicated and overwhelming, but smart tax strategies can save you thousands of dollars—just ask Elon Musk! The billionaire entrepreneur is known for his bold business moves, but one of his smartest financial strategies? Legally minimizing his tax bill.
For example, Musk famously moved Tesla’s headquarters from California to Texas—a state with zero state income tax—which helped him and the company save millions. While you might not be running a billion-dollar company, this principle applies to everyday taxpayers too! If you live in a high-tax state like California or New York, relocating to a tax-friendly state (like Texas, Florida, or Nevada) could save you thousands over time.
Another Musk-like move? Maximizing stock-based compensation. Instead of taking a traditional salary, Musk primarily earns stock options, which are often taxed at lower capital gains rates rather than high ordinary income tax rates. While most young professionals don’t get paid in stock, you can still take advantage of similar strategies by investing in tax-advantaged accounts like a Roth IRA or 401(k), which help you grow wealth while minimizing taxes.
The key to keeping more of your hard-earned money is understanding the tax system and using every legal advantage available. To help you do just that, I’ve put together six of the best tax-saving hacks for 2024—inspired by Musk’s playbook, but totally doable for regular people like us.
Ready to save big on taxes? Let’s dive in!
1. Student Loan Interest Deduction
What You Need to Know:
- If you’re repaying student loans, you can deduct up to $2,500 in interest from your taxable income.
Example:
Emma (27) graduated from college and is paying off her student loans. In 2024, she paid $2,800 in interest, but she can only deduct $2,500 on her tax return. This reduces her taxable income, meaning a lower tax bill and potentially a higher refund!
Who Qualifies?
- Single filers with an annual income of $75,000 or less (full deduction)
- Married couples filing jointly with an income of $150,000 or less
- No deduction for single filers earning $90,000+ or joint filers earning $180,000+
2. Education Tax Credits
What You Need to Know:
- If you paid for college tuition or educational expenses, you can claim one of these two tax credits:
1. American Opportunity Tax Credit (AOTC) → Get up to $2,500 back
2. Lifetime Learning Credit (LLC) → Claim 20% of tuition costs, up to $2,000
Example:
James (25) enrolled in a graduate program and spent $9,000 on tuition.
- If he chooses AOTC → He can deduct up to $2,500
- If he chooses LLC → He gets 20% of $9,000 = $1,800 back
Which One Should You Choose?
Undergrad student? → AOTC is the better option
Grad student or taking job-related courses? → LLC might work better
3. Pre-Tax Commuter Benefits
What You Need to Know:- If your employer offers Pre-Tax Transit Benefits, you can pay for public transportation or parking with pre-tax dollars, lowering your taxable income.
Sophia (30) spends $200 per month on public transportation.
- If she uses Pre-Tax Transit Benefits, that’s $2,400 per year in pre-tax savings!
- This lowers her taxable income, reducing her overall tax bill.
Check with your employer to see if they offer this benefit!
4. Tax Deductions for Side Hustlers & Freelancers
What You Need to Know:
- If you run a side business, freelance, or work as an independent contractor, you can deduct business-related expenses to lower your taxable income.
Example:
Kevin (29) works a full-time job but also does freelance graphic design.
- He bought a new MacBook for $2,000 for his business.
- Because he earns freelance income, he can deduct the cost of his laptop, home office rent, and business software.
If you have a side hustle, keep track of ALL business-related expenses—they could save you big on taxes!
5. Mortgage Interest Deduction
What You Need to Know:
- If you own a home, you may be able to deduct mortgage interest from your taxable income.
- For homes purchased before Dec 15, 2017 → Deduction limit: $1M mortgage
- For homes purchased after Dec 15, 2017 → Deduction limit: $750K mortgage
Example:
Emily (32) took out a $900,000 mortgage in 2021.
- Since the tax law only allows deductions on $750,000, she can only claim 83.3% of her mortgage interest on her tax return.
If you plan to buy a home, keep these limits in mind for maximum tax savings!
6. IRA Contributions – It’s Not Too Late!
What You Need to Know:
- Contributing to an IRA (Individual Retirement Account) can lower your taxable income and help you save for the future.
- There are two types of IRAs:
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My Secret Tip: Maximize Your Tax Deductions!
One of the easiest ways to avoid missing out on tax deductions is to track your expenses. A little organization can make a huge difference when filing your tax return!
- Develop a habit of tracking your expenses daily or weekly.
- Use budgeting apps to automate your expense tracking.
- Keep digital copies of receipts to ensure you get every possible deduction.
Best Apps for Expense Tracking & Maximizing Deductions:
2. YNAB (You Need A Budget) (ynab.com) – Helps you create a budget and stick to it.
3. QuickBooks Self-Employed (quickbooks.intuit.com) – A must-have for freelancers and side hustlers.
4. Expensify (expensify.com) – Snap pictures of receipts and track tax-deductible expenses effortlessly.
Let’s Chat – Share Your Tax-Saving Strategies!
I’ve shared some of my best-kept tax-saving secrets—now it’s your turn!
How are you preparing for your 2024 tax return?
Do you have a go-to strategy for maximizing deductions or cutting unnecessary tax costs?
Drop your thoughts, experiences, or small wins in the comments below! Your story might inspire someone else to save big!
And stay tuned! Next time, we’re shifting gears to talk about a crucial milestone in financial independence—building your first $100,000 in assets.
Until next time, keep saving, keep investing, and keep building your future!
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