Hoping to bring down tax bill? Even in 2025, you can influence last year’s return

Though the calendar year has ended, you can still find a few strategies to influence your previous year’s tax return. These post-year-end tax tips can help you maximize your deductions and credits before you file.

Contribute to a Traditional or Roth IRA: You have until the tax filing deadline, April 15, to make contributions to your IRA for the 2024 tax year. For Traditional IRAs, this can reduce your taxable income, potentially leading to a lower tax bill. Roth IRAs don’t offer an immediate tax break, but qualifying withdrawals are tax-free in retirement, providing a future benefit.

Contribute to a SEP IRA or Solo 401(k): If you’re self-employed, contributing to a SEP IRA or a Solo 401(k) can significantly decrease your taxable income. Contributions can be made up until the tax filing deadline, including extensions. For SEP IRAs, you can contribute up to 25% of your net earnings from self-employment, with a maximum of $61,000 for 2024.

Make HSA contributions: For those with high-deductible health plans, contributing to an HSA is still possible until April 15 for the 2024 tax year. HSAs offer triple tax benefits: contributions are tax-deductible, the assets grow tax-free and withdrawals for qualified medical expenses are tax-free.

Review and file an amended tax return: If after filing your taxes you discover missed deductions or credits for 2024 or earlier tax years, you can file an amended return. The IRS allows you to amend your return up to three years after the original filing date, enabling you to claim any overlooked benefits.

Itemize deductions: If you didn’t itemize deductions on your initial tax return but had significant expenses such as medical costs, mortgage interest or state taxes near the threshold, it might be worthwhile to revisit this. An amended return can include these deductions if they offer a greater tax benefit than the standard deduction.

Conclusion: Even after Dec. 31, you still have opportunities to adjust your financial strategy and potentially lower your tax bill for the previous year. With the April tax deadline in sight, now is the time to ensure you’re taking full advantage of these options. For personalized advice and to ensure your tax strategy aligns with current laws and your financial goals, consider consulting a tax professional.

Rodney M. Loesch CFP, CDFA is a senior partner at LifeGoals Strategies Group in Lee’s Summit. Loesch is an LPL financial advisor with services offered through LPL Financial, a registered investment advisor, member FINRA/SIPC.

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This story was originally published March 19, 2025 at 5:00 AM.