Fidelity's Tax Tip: Maximize Your Returns

0:00In Durham, it's March 20th. Here's what is happening. Fidelity Investments has a simple tax tip for anyone who lost money on stocks or funds last year. You can deduct up to $3,000 of those capital losses against your ordinary income, even without itemizing deductions. Losses first offset any gains, and anything left carries forward year after year with no time limit. Mary Couples filing separately get $1,500. The key move is tax loss harvesting, where you sell losing investments and buy similar ones to keep your portfolio balanced. Just avoid the wash sale rule by not repurchasing the exact same security within 30 days. Fidelity says this, along with other strategies, helps their average clients save $4,126 in taxes each year. Taxes quietly drag down returns by about 2% annually, turning 10.3% stock gains into 8.3% after uncle. Sam takes his cut. Over 30 years that gap can derail retirement plans, but smart moves like this close

1:04it fast. Beyond losses, Fidelity pushes maxing tax-advantaged accounts for 2026, with 401k limits at $24,500, plus catch a boost up to $11,250 for those 60 to 63. Health savings accounts offer triple tax breaks at $4,400 for individuals, and new seniors get a $6,000 bonus. Deduction. Start checking your broker's statements now to harvest losses and track contributions. These steps put more money back in your pocket without needing fancy advice.