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Before You Hit ‘Submit:’ 5 Tax Moves to Make for 2025

  • Writer: Daniel Kurt
    Daniel Kurt
  • Feb 2
  • 4 min read

Updated: Mar 27

‘Tax Day’ written on calendar page with push pin in date and calculator to the side

Main takeaways


  • You can still lower last year’s tax bill by making certain moves before the tax deadline, like funding an IRA or HSA.


  • Above-the-line deductions and lesser-known credits can reduce your taxes even if you take the standard deduction.


  • A quick last-minute review of contributions, deductions and credits can translate directly into a smaller balance due or a bigger refund.


The tax season is already underway, but that doesn’t mean your liability for last year is already set in stone. Below are five financial maneuvers you can make before the deadline to help lower the amount you owe—or beef up your refund.

 

1. Contribute to your IRA


Putting money into a traditional IRA is one of the best ways to lower your taxable income. Don’t worry if you never quite got around to doing it last year—you actually have until the April 15 filing deadline to make pre-tax contributions to your IRA for 2025. Depending on your income, you may be able to deduct up to $7,000 (or up to $8,000 if you’re age 50 or older). 


If you’re self-employed, you can generally postpone 2025 contributions to your SEP IRA or individual 401(k) until Tax Day as well—or even later, if you file an extension. Just remember to have your financial institution designate your contribution as “prior year” so they count against your 2025 limit.


2. Recharacterize your Roth contributions


If you made contributions to a Roth IRA last year but subsequently realized that you make too much money for these accounts, don’t worry. You have until the deadline to “recharacterize” those purchases as traditional IRA (i.e. non-Roth) contributions. Depending on how much you earned and whether you had a retirement plan through work, those recharacterized contributions can count as a deduction on your tax return. If you file a single return and are covered by a workplace plan, for example, your entire contribution is deductible if you make less than $79,000. It’s reduced if you make between $79,000 and $89,000; beyond that, it’s non-deductible. 


3. Bulk up your HSA 


As with IRAs, the tax code gives you until the filing deadline to make 2025 contributions to your health savings account. If you had a high-deductible health plan (HDHP) all of last year, you can contribute up to $4,300 as an individual or up to $8,550 if you carried family coverage. 


Don’t be deterred from aggressively building up your HSA balance, even if those contribution limits are more than you plan on spending any time soon on doctor visits. Life can be unpredictable, and as you get older your medical needs are almost invariably going to rise. Because of their triple-tax advantage that these accounts offer—that includes tax-deductible contributions and potentially tax-free withdrawals—they can be a powerful part of your savings strategy.


4. Scrounge for above-the-line deductions


Even if you take the standard deduction, as most taxpayers do, there are plenty of additional ways to reduce your taxable income. These “above-the-line” deductions, as they’re called, are available whether you itemize your deductions or not. 


In additional to IRA and HSA contributions, other above-the-line deductions include:



  • Self-employment taxes. You’re eligible to deduct 50% of the self-employment taxes you paid in 2025 from your taxable income.



  • Educator expenses. Teachers can write off up to $300 for classroom supplies and equipment that they pay out of pocket (or up to $600 for families where both parents are educators).


  • Alimony payments. You can write off the amount you paid to a former spouse as long as the divorce or separation agreement was completed prior to 2019 and you meet other requirements.


5. Check for overlooked tax credits


Credits are even more powerful than deductions at boosting your refund because they lower your tax liability on a dollar-for-dollar basis. And there are plenty that often get overlooked.


Here are some examples:


  • Energy Efficient Home Improvement Credit. Certain upgrades to your home—such as adding insulation, buying energy-efficient HVAC equipment or installing certain windows and doors—may qualify you for this tax perk.


  • Child and Dependent Care Credit. If you paid someone to care for your child who was under age 13—or disabled—while you worked or looked for a job, you can get a credit to help offset your costs. Qualified expenses include daycare, after-school car and summer day camps.


  • Saver’s Credit. If you’re a low or moderate income-earner, you can snag a credit for your contributions to a traditional IRA, Roth IRA or workplace retirement plan. This is on top of any deductions you already claimed for those same contributions.


  • The Lifetime Learning Credit. The credit helps offset the cost of going to graduate or professional school, including part-time or non-degree classes.


The upshot


The clock hasn’t run out yet, and a few smart moves before the filing deadline can still meaningfully shrink what you owe or grow your refund. Take a final pass through these options now, and you’ll put yourself in the best position to keep more of what you earned.

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