Tax season’s done, but that doesn’t mean you should forget about taxes until next April. Taking a few steps now can set you up for a smoother filing experience—and maybe a bigger refund. Here are three moves to make post-tax season to boost your financial game plan for 2025.
1. Adjust Your Withholdings
If your refund was massive or you owed a chunk, your withholdings might need tweaking. A big refund means you’re lending Uncle Sam money interest-free, while owing cash signals underpayment. Grab your latest paystub and last year’s return, then use the IRS’s Tax Withholding Estimator online. It’s quick and guides you to update your W-4 form with your employer. For example, Sarah, a graphic designer, cut her refund from $3,000 to $1,500 by adjusting her withholdings, freeing up $125 monthly for savings. Small tweaks now can balance your cash flow all year.
2. Max Out Retirement Contributions
Contributing to retirement accounts like an IRA or 401(k) isn’t just for your future—it’s a tax win today. These contributions often lower your taxable income, potentially saving hundreds or thousands next April. In 2025, you can sock away up to $7,000 in an IRA ($8,000 if over 50) or $23,500 in a 401(k) ($31,000 if over 50). Even boosting your 401(k) by 1% can make a dent. Check with HR to increase payroll deductions or set up an IRA with a brokerage. Every dollar saved is a double victory: less tax, more retirement cushion.
3. Organize Records Early
Don’t wait until March to hunt for receipts. Set up a simple system now—think a folder for physical receipts or a digital app like Evernote for expenses. Track deductible items like charitable donations, medical costs, or business expenses if you’re self-employed.
Of course, you can always reach out to a tax professional to help with these and other actions to improve your tax situation for 2025. WealthCharter is here to help.