If you’re expecting a big tax refund this year, the window to make a difference is closing fast. While many tax-saving strategies need to be implemented before Dec. 31, there are still a few smart money moves you can make before the April 15 filing deadline that can boost your return — or at least, reduce what you owe.
2025 may be over, but it’s not too late to maximize your return (or reduce your tax bill) before the April 15 tax filing deadline. Here are a few strategies to try now.
Did you know that you can still make last year contributions to a traditional IRA until the 2026 tax filing deadline?
Contributing to a retirement account can reduce your taxable income and, in turn, help your tax return. So, if you didn’t contribute much to your IRA last year, now might be the time to do so.
For the 2025 tax year, the maximum amount you can contribute to an IRA depends on your age:
-
Under 50 years of age: Up to $7,000
-
Age 50 or older: Up to $8,000 (including a $1,000 catch-up contribution)
Note that these limits apply to all of your IRAs (including traditional and Roth IRAs) combined. Additionally, if your taxable wages are below these limits, you can only contribute the amount you earned.
If you have a high-deductible health plan, contributing to a Health Savings Account (HSA) can also reduce your taxable income. And like an IRA, you can make up to April 15, 2025 contributions to an HSA, further reducing your tax liability.
For tax year 2025, the HSA contribution limit is $4,300 for those under age 55 and $5,300 for those age 55 and older (including a $1,000 catch-up contribution). The maximum for families is $8,550, or $9,550 if you’re 55 or older.
The biggest benefit of using an HSA is that it allows you to pay for qualified medical expenses using pre-tax dollars. However, even if you don’t think you’ll need the extra money in your account, it’s still worth bumping your stake. After age 65, withdrawals for non-medical expenses are allowed without penalty (you just pay ordinary income taxes, just like a traditional IRA), essentially doubling as a long-term retirement savings vehicle.
Your tax return may be very different this year depending on your financial situation. The Big Beautiful bill introduced a number of new tax deductions in 2025, including deductions for instruction and overtime, an increase to the maximum child tax credit, a higher cap for state and local tax deductions, and a larger deduction for qualified seniors.
A quick refresher: Tax deductions reduce your taxable income and may increase your refund by reducing your total tax liability, while tax credits provide a dollar-for-dollar reduction in your total tax bill.
If you want to maximize your return, it’s important to take full advantage of all the tax deductions and credits you’re eligible for. So, don’t assume that your tax situation for 2025 will be the same as previous years.
Consult your tax preparer or tax preparation software to determine what credits and deductions you qualify for this year.
Your tax filing status determines your tax bracket, standard deduction, and eligibility for key credits. So, choosing the right mode is key to maximizing your returns.
If you experience a major life change in 2025 — such as getting married or divorced, or having a child — you may need to update your filing status. Again, if you’re not sure which one fits your current situation, it’s a good idea to reach out to a tax professional for guidance.
Read more: 5 Smart Ways to Use Your Tax Refund
