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As this year’s tax filing deadline quickly approaches, you may wonder whether you’ve done all you can to reduce your tax exposure. While the most effective approach is to employ year-round tax planning strategies, there are still some steps you can take to reduce your 2025 liabilities prior to the 2026 filing deadline.

The following moves have the potential to reduce your taxable income and/or boost your refund.

Max out your 2025 IRA contributions.

Did you know you can continue making 2025 IRA contributions until the tax filing deadline of April 15, 2026? Maxing out contributions to your tax-deferred retirement accounts can be a great way to reduce your taxable income for the year.

In 2025, taxpayers under age 50 can contribute up to $7,000 to a traditional IRA. Those aged 50 or older can make an additional $1,000 catch-up contribution, for a total contribution of $8,000. Because these contributions are made with pre-tax assets, they can help reduce your income tax liabilities.

It’s important to note that 2025 contributions to Roth IRAs can also be made until April 15, 2026. Because they’re funded with after-tax assets, Roth contributions do not reduce your taxable income in the current year; however, they do offer tax benefits down the road, as retirement withdrawals from Roth accounts are exempt from taxes. 

Fully fund your health savings account (HSA). 

If you are enrolled in a high-deductible health plan (HDHP) that provides access to a health savings account (HSA), you have until April 15, 2026, to make 2025 contributions. HSAs offer three distinct tax benefits.

1. Tax-deductible contributions – Similar to traditional IRA contributions, HSA contributions are made with pre-tax assets, which can help reduce your taxable income during the year in which they are made.
2. Tax-exempt growth – Once contributed, assets held within an HSA grow tax deferred in the account. This is a significant benefit over most savings and investment accounts, which are taxed on an ongoing basis. Also, unlike traditional IRAs and 401(k)s, HSAs are not subject to required minimum distributions (RMDs), which means assets can continue growing within the account indefinitely.
3. Tax-free withdrawals for qualified expenses – When used to pay for qualified medical expenses, HSA withdrawals are exempt from taxes.

The 2025 HSA contribution limit is $4,300 for individuals and $8,550 for families. Those aged 55 and older can contribute an additional $1,000 catch-up contribution. 

Claim any overlooked deductions or credits. 

Before submitting your tax return, be sure to review it one last time for any overlooked deductions or credits. Commonly missed deductions and credits include:

• Student loan interest – You may be eligible to deduct up to $2,500 of interest paid on student loans.
• Medical expenses – Those who file an itemized tax return can deduct unreimbursed medical costs that exceed 7.5% of adjusted gross income (AGI). Qualified expenses include doctor visits, prescriptions, mileage to medical appointments at approximately $0.21 per mile, long-term care premiums, glasses, hearing aids, etc.
• Charitable donations – Charitable donations, including out-of-pocket expenses and mileage, can be deducted from your itemized tax return.
• Educator expenses – If you’re a teacher, you may be eligible to deduct up to $300 for unreimbursed classroom supplies, books and technology.
• Child and dependent care – Working parents and those caring for disabled or elderly loved ones may be eligible to receive a tax credit for childcare/dependent care expenses.

Could you use some help implementing these last-minute tax savings strategies? North Oaks Wealth Management is here for you. We support clients in building strong financial futures, one brick at a time. Schedule a call to learn more.