There are other ways to save on your taxes. In the educational realm, 529 plans and Coverdell ESAs let you set money aside for educational purposes, with tax-free treatment as long as you use the money on qualifying expenses. There are no income limits on 529 plans, but income limits of $95,000 to $110,000 for single filers and $190,000 to $220,000 for joint filers apply to reduce or eliminate the ability to make the maximum Coverdell contribution of $2,000 per year.

For healthcare expenses, those with high-deductible health insurance coverage can use health savings accounts to set money aside for future care costs. Contribution amounts of up to $3,600 for those with self-only policies or $7,200 for family policies apply in 2021, with minimum annual deductibles of $1,400 or $2,800 respectively required to qualify for high-deductible health plan status. Catch-up contributions of $1,000 are available if you're 55 or older, but a qualifying plan must have maximum out-of-pocket expenses of $7,000 for self-only policies or $14,000 for family coverage.