Ultimate Tax-Saving Guide for H1B Holders in California (With Spouse & Kids)
If you're an H1B visa holder in California , you know how high state and federal taxes can eat into your hard-earned money. But the good news? There are legal ways to minimize your tax liability and even claim refunds if you've overpaid. Whether you're looking to lower taxable income, claim deductions, or maximize credits , this guide will walk you through the best strategies to save thousands of dollars in taxes. 1. Maximize Pre-Tax Contributions to Reduce Taxable Income One of the best ways to pay less in taxes is to reduce your taxable income . Here’s how: 401(k) Contributions (Employer-Sponsored Retirement Plan) ✅ Contribution limit for 2024: $23,000 (or $30,500 if you're 50+). ✅ Every dollar contributed reduces your taxable income and saves both federal and state taxes . ✅ If your employer offers a match, contribute at least up to the match —this is free money! Traditional IRA (Individual Retirement Account) ✅ Contribution limit for 2024: $7,000 ...