Max Out Your Retirement Contributions (Even Now)
Even though the calendar flipped past 2025, you haven’t missed your shot at lowering that year’s tax bill. You can still contribute to an IRA all the way up until April 15, 2026 and those contributions might be deductible if your income qualifies. It’s one of the few ways time folds in your favor during tax season.
If you’re going the Traditional IRA route, check your modified adjusted gross income (MAGI) and whether you or your spouse were covered by a retirement plan at work. If the numbers land right, your contribution could shrink your taxable income.
Self employed? You’ve got even more runway. SEP IRAs and Solo 401(k)s let you put away a lot more than traditional IRAs potentially tens of thousands, depending on your income. And yes, those extra contributions are tax deductible too. If you’ve got the cash and the need to cut down your tax bill, this is one of the strongest plays available.
If you have a high deductible health plan (HDHP), double check whether you’re eligible for a Health Savings Account (HSA). If you are, contribute to it especially before the tax deadline. Every dollar you put in is tax deductible, lowers your taxable income, and grows tax free. Better still, when used for qualified medical expenses, withdrawals stay tax free too.
Think of it like a triple tax win that most people overlook. Even if you’ve already had medical expenses from 2025, you might still come out ahead. Some of those costs could qualify for itemized deductions if they exceeded a certain percent of your income. So, it’s worth running the numbers before writing that off entirely. Small moves here can lead to big savings.
Simple rule: if your plan qualifies and you can still contribute do it.
Pay Now, Deduct Now: Smart Expense Timing
One of the simplest tax hacks that still works like a charm? Timing. If you’re facing a big bill or looking to shrink one prepaying deductible expenses before the year wraps can lighten your load. Think rent for your home office, business related subscriptions, or insurance premiums. As long as it’s a business cost and you’re filing on a cash basis, that expense counts the moment money leaves your account.
For the self employed, knowing whether you use the cash or accrual method isn’t just tax trivia it guides how you move. On a cash basis? You record income when you receive it and deduct expenses when you pay them. So pushing income to next year and pulling expenses into this one can make a dent in your final tax bill. On accrual? You log income when earned, and expenses when incurred. The strategy shifts, but the goal’s the same: reduce taxable income without crossing any lines.
Bottom line: Use the tax code’s timing rules to your advantage. It’s legal, it’s effective, and it can save you more than just pocket change.
Make Last Minute Charitable Donations
If you’re looking to chip away at your 2025 tax bill, there’s still time but the window is closing fast. Any donations made before midnight on April 15, 2026, can still count toward the 2025 tax year. That includes cash gifts, gently used clothing, or even appreciated assets like stock or crypto. Just make sure it goes to a qualified charity and this is key that you keep solid records. A receipt or confirmation letter is non negotiable if you want to claim it.
Also worth checking: will you get more mileage from itemizing or taking the standard deduction? If your charitable giving plus other deductions pushes you past the standard threshold, itemizing may score you a bigger benefit. That said, don’t give just to get a deduction give because it matters to you. The tax break is a bonus.
Review Side Hustle Write Offs
Picked up a freelance gig in December? Sold a few products online? Doesn’t matter if the money came in at the last minute related expenses are still in play. The IRS says if the cost is ordinary and necessary for your business, it’s deductible. That includes gear, camera upgrades, software subscriptions, even the portion of your phone bill tied to client calls or editing on the go.
Keep your records tight. Mileage driven for shoots or client meetings? Log it. That monthly payment for editing apps? That’s a deduction. If you used part of your home as an office, include a portion of rent or utilities. The more precise you are, the more you keep in your pocket.
Before you hit submit on your return, dig into Understanding the Tax Implications of Side Hustles. You might be surprised by what the IRS lets you write off if you track it right.
Claim Every Available Credit
Tax credits are one of the most effective ways to lower your bill they reduce what you owe dollar for dollar. If you contributed to a retirement account like a 401(k) or IRA, check if you qualify for the Saver’s Credit. It’s often overlooked, but it can put real money back in your pocket if your income falls within the right range.
The Earned Income Tax Credit (EITC) is another major player. It’s designed to benefit low to moderate income earners, especially those with kids. Even if you didn’t owe anything in taxes, the EITC could mean a refund check is coming your way.
Last but not least, don’t skip over credits tied to energy upgrades or education. Whether you installed solar panels or paid for college classes, those expenses could pay off at tax time. Go through your year and see what sticks you might be leaving money on the table if you don’t.
The bottom line: credits are free money for doing things that are smart in the long run. Don’t ignore them.
Quick Wrap Up: Don’t Miss the Deadline
This part’s simple: April 15, 2026 is your cut off. File your taxes by then, or get an extension but don’t confuse that with extra time to pay. You still need to send in what you owe by the deadline, or face penalties and interest.
Next, don’t leave money on the table. Whether you’re freelance, side hustling, or just trying to make the most of your W 2, tax software can help track deductions you didn’t even know existed. Better yet, bring in a pro if your finances have any complexity at all.
The legal strategies listed throughout this guide? They only work if you move now. Deadlines aren’t flexible after they’ve passed, and the IRS doesn’t care about your good intentions. Act fast, keep your documentation tight, and be thorough because the biggest mistake you can make is assuming you’ll deal with it later.
