10 Tax Tips & Tricks Every Taxpayer Should Know

Let's explore ten (10) straightforward ways to potentially lower your tax bill and make tax season less stressful.

For 2025, the standard deduction is $15,750 for single filers and $31,500 for married couples filing jointly. If your potential itemized deductions (like mortgage interest, charitable donations, and medical expenses) add up to more than your standard deduction, itemizing could save you money.

For example, if you're single with $18,000 in potential itemized deductions, you'd save $2,250 in taxable income by itemizing instead of taking the standard deduction. Keep track of deductible expenses throughout the year to make this decision easier when tax time comes.

Contributing to retirement accounts like 401(k)s and traditional IRAs can lower your taxable income right now. For 2025, you can contribute up to $23,500 to a 401(k) and $7,000 to an IRA. If you're 50 or older, you can make additional "catch-up" contributions of $7,500 for a 401(k) and $1,000 for an IRA.

Consider this: If you're in the 22% tax bracket and contribute $5,000 to a traditional IRA, you could save $1,100 on your taxes this year. Plus, your money grows tax-deferred until retirement. If your employer matches 401(k) contributions, that's free money you shouldn't leave on the table.

If you've sold investments at a profit this year, you might owe capital gains tax. You can offset these gains by selling underperforming investments at a loss. This strategy, called tax-loss harvesting, can reduce your tax bill while allowing you to rebalance your portfolio.

For example, if you have $10,000 in capital gains but also sell investments with $8,000 in losses, you'll only be taxed on the $2,000 difference. If your losses exceed your gains, you can use up to $3,000 of the excess to reduce your ordinary income, and carry forward any remaining losses to future tax years.

Just be careful not to repurchase the same or a "substantially identical" investment within 30 days before or after the sale, or you'll trigger the "wash-sale rule" and lose the tax benefit.

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Health Savings Accounts (HSAs) offer a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. For 2025, you can contribute up to $4,300 for individual coverage or $8,550 for family coverage. If you're 55 or older, you can add an extra $1,000.

Unlike Flexible Spending Accounts (FSAs), HSA funds roll over year to year with no "use it or lose it" rule. This makes HSAs powerful tools for both current medical expenses and long-term savings. To qualify, you must have a high-deductible health plan (HDHP).

Being strategic about charitable giving can help both good causes and your tax situation. If you itemize deductions, consider "bunching" multiple years of donations into a single tax year to exceed the standard deduction threshold. Another tax-smart approach is donating appreciated stocks or assets instead of cash.

For example, if you donate stock that's worth $10,000 that you bought for $5,000, you can deduct the full $10,000 market value and avoid paying capital gains tax on the $5,000 appreciation. If you're 70½ or older, you can make qualified charitable distributions (QCDs) directly from your IRA to charity, which can satisfy your required minimum distributions without increasing your taxable income.