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The Hidden Tax Strategies You Can Actually Use (Inspired by Elon Musk, Built for 2024)
Hey Millennials & Gen Z, let’s get real—it's already February 2025.
The holidays are over, and now we’re here again: tax season.
It might sound boring, but hear me out. If you understand how to navigate it, tax season can be the time you actually save serious money.
And no, you don’t have to be Elon Musk to do it.
But you can definitely borrow a few smart moves from his playbook.
Can Elon Musk Actually Teach Us to Save on Taxes?
Say what you will about him, but Musk knows how to make financial moves.
One of his most strategic decisions? Moving Tesla’s headquarters from California to Texas—a state with zero state income tax. That single change saved him and his company millions.
You and I may not be running billion-dollar companies, but the principle still applies.
Choosing where you live, how you earn, and what accounts you use matters. A lot.
Another move Musk is known for: taking stock-based compensation instead of a big paycheck. Why? Because stock gains are often taxed at a lower rate than regular income.
We might not be paid in Tesla shares, but we can use similar strategies—like contributing to a Roth IRA or 401(k). The goal is the same: keep more of what you earn.
Here are six legal, realistic tax-saving strategies you can start using today.
1. Student Loan Interest Deduction
If you're paying back student loans, you may be able to deduct up to $2,500 in interest on your tax return.
Example:
Emma paid $2,800 in interest in 2024. She can deduct $2,500, lowering her taxable income—and possibly increasing her refund.
Who qualifies:
- Single filers: income under $75,000 (full deduction)
- Married filing jointly: under $150,000
- No deduction if income is over $90,000 (single) or $180,000 (joint)
2. Education Tax Credits (AOTC vs. LLC)
If you paid tuition in 2024, these credits could save you money:
- American Opportunity Tax Credit (AOTC): up to $2,500
- Lifetime Learning Credit (LLC): 20% of tuition, up to $2,000
Example:
James spent $9,000 on grad school.
- With AOTC: he could get $2,500 back
- With LLC: he gets $1,800 back
Undergrad? Use AOTC.
Grad student or job training? LLC might be better.
3. Pre-Tax Commuter Benefits
If your employer offers this, you can pay for public transit or parking with pre-tax dollars.
Example:
Sophia spends $200 a month on transit. That’s $2,400 a year she can pay pre-tax, reducing her taxable income.
Ask your HR team if this benefit is available.
4. Deductions for Freelancers and Side Hustlers
If you earn money on the side—design, tutoring, ride-sharing, etc.—you can deduct business-related expenses.
Example:
Kevin does freelance design and bought a $2,000 laptop for work. That’s a deductible expense. So is part of his rent if he uses a home office, software, internet, and more.
Track everything. It adds up.
5. Mortgage Interest Deduction
Own a home? You may be able to deduct the interest from your mortgage.
Key limits:
- Bought before Dec 15, 2017: deduct interest on up to $1 million in mortgage
- After that date: only $750,000 is deductible
Example:
Emily has a $900,000 mortgage from 2021. She can deduct about 83.3% of her interest, because only $750,000 qualifies.
6. IRA Contributions (It’s Not Too Late)
You can still contribute for 2024.
Traditional IRA: contributions reduce your taxable income now
Roth IRA: pay tax now, but withdrawals are tax-free later
Limits for 2024:
- $7,000 per year
- $8,000 if you’re 50 or older
If you qualify, a Roth IRA is a great way to grow money tax-free.
Bonus Tip: Track Everything
The best tax deduction is the one you don’t forget.
Track your expenses all year—not just in April.
Make it easy by using tools that fit your lifestyle.
Recommended Tools for Expense Tracking
- Mint: links to your accounts and auto-categorizes expenses
- YNAB: helps you assign every dollar a job
- QuickBooks Self-Employed: great for freelancers
- Expensify: fast receipt capture and organization
What’s Your Strategy?
I’ve shared what’s worked for me. Now I’d love to hear from you.
How are you planning for your 2024 tax return?
Do you have a favorite app or small tip that saved you money last year?
Ever missed a deduction you wish you hadn’t?
Leave a comment and share your story. Someone else might learn something valuable from you.
Coming Soon
In the next post, we’ll talk about a major milestone on the road to financial freedom: how to build your first $100,000 in assets—one step at a time.
Until then, keep saving, keep investing, and keep building your future. One smart decision at a time.
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