There's another deadline besides the tax deadline tomorrow. Tuesday, April 17, is also the last day to fund an individual retirement account (IRA) for 2017 — and funding an IRA happens to be an effective tax-saving strategy.
If you didn't know about that, you're not alone: a full 75 percent of Americans think contributing to or opening an IRA after the end of the year to reduce their taxable income is illegal, according to NerdWallet's 2018 Tax Study.
The reason this particular strategy can save you money is because "when you contribute to an IRA, that amount goes toward reducing your taxable income," Andrea Coombes, tax specialist at NerdWallet, tells CNBC Make It.
"Say your income is $45,000, and you contribute the maximum $5,500 to an IRA. That reduces your taxable income to $39,500. Put another way, if your marginal tax rate is 25 percent, a $5,500 IRA contribution reduces your tax bill by $1,375."