The April 15 tax deadline is less than two weeks away, which many Americans probably think is too late to reap additional savings. But they’re wrong, tax experts said.
The standby tactics of filling up retirement and health savings accounts (HSA) are always advisable, but this year, there may be more. President Donald Trump’s signature tax and spending plan passed last summer offers Americans many tax breaks retroactive to 2025 that they can use.
“This year’s expanded tax brackets and the tax reforms passed last year — including making permanent the 2017 tax cuts and key provisions of the One Big Beautiful Bill — are freeing up capital for millions of filers and unlocking new opportunities for savings, reinvestment, and small business growth,” said Keith Hall, president and chief executive of National Association for the Self-Employed, a nonprofit that helps the self-employed and micro-businesses.
They just need to know where to look, experts said. Below are some of their top tax savings tips.
Max out retirement funds
Taxpayers can contribute to traditional retirement funds such as their 401(k) or individual retirement account (IRA) up until April 15 and take the tax deduction for 2025 to lower taxable income.
For 2025, the 401(k) employee contribution limit is $23,500 (pre-tax and Roth combined), up from $23,000 in 2024. Only pre-tax contributions are eligible for an upfront tax deduction. Roth contributions are made with after-tax money, but retirement withdrawals are usually tax-free.
Workers aged 50-59 or 64+ can make an extra $7,500 catch-up, while those 60-63 can contribute up to $11,250.
The IRA contribution limit is $7,000 for individuals under 50 years old. Those aged 50 or older can contribute another $1,000.
Note: If you have a workplace retirement plan, the IRA deduction phase out begins at $79,000 for single filers and $126,000 for joint filers.
Fill up HSAs
If you’ve had a high-deductible health plan all year, you have until April 15 to make tax deductible contributions to an HSA. For 2025, HSA contribution limits are $4,300 for individuals and $8,550 for families, plus a $1,000 catch-up contribution if you’re 55 or older.
Even better, HSA contributions offer triple tax advantages. Not only do contributions lower taxable income now but invested HSA money grows tax-free and withdrawals for qualified medical expenses are tax-free.
“Together, the benefits of pretax contributions, tax-free earnings, and tax-free withdrawals for qualified medical expenses can add up to significant savings over the course of a family’s life if they are healthy and let the funds accumulate,” said Richard Pon, certified public accountant in San Francisco. “So, think of the HSA as a piggy bank for medical expenses that can grow similar to an Individual Retirement Account.”
In 2025, millions more Americans were eligible for HSAs, thanks to the tax and spending bill passed last summer.
Check state 529 deadlines
More than 30 states and the District of Columbia offer state tax deductions or credits for contributions to 529 educational savings funds. While most required contributions are made by the end of the calendar year to count for 2025, there are eight that have an April 15 or later deadline.
Those states are:
Georgia
Indiana
Iowa (April 30)
Kansas
Mississippi
Oklahoma
South Carolina
Wisconsin
Self-employed get extra tax benefits
If you had a side-hustle or did freelance work last year, consider opening a SEP IRA based on those earnings to boost your tax deduction and increase retirement savings. A SEP IRA allows you to contribute up to 25% of your net self-employment income, with a 2025 cap of $70,000. Contributions to the SEP IRA by the filing deadline, including the extension period if you take it, are tax deductible for the prior year’s taxes.
You can have both a SEP IRA for your own source of income and a 401(k) through your employer.
Can you itemize?
About 90% of Americans take the standard deduction, but this year, it may be worthwhile to check if you can itemize.
The state and local tax (SALT) deduction cap increased to $40,000 for taxpayers with modified adjusted gross incomes less than $500,000 from $10,000 in 2025, making it more lucrative to itemize, especially for people who live in an area with high property taxes. The SALT deduction can only be taken by itemizers.
Comb OBBB for tax benefits
OBBB created a host of benefits for everyday taxpayers, even without itemizing. So, it’s important to double check that you’ve taken all the ones you’re eligible for. Some of them include:
- No tax on tips, up to $25,000
- No tax on overtime income, up to $12,500 or $25,000 for couples filing jointly
- Additional tax deduction for seniors age 65 and older. Single taxpayers get a $6,000 deduction and married couples filing jointly receive a $12,000 deduction, if both are eligible.
- No tax on car loan interest, up to $10,000, if the vehicle was purchased after 2024 and had final assembly in the United States.
IRS warns of these missed tax breaks
The IRS says millions of Americans miss these credits each year:
- Earned Income Tax Credit: 20% of eligible taxpayers don’t claim this tax credit, which was worth $2,916 on average in 2024, the IRS says. It is designed mostly for low- to moderate-income families.
- American Opportunity Tax Credit: offers up to $2,500 per year per student, with up to $1,000 of it refundable, for those with modified adjusted gross income of $90,000 or less ($180,000 or less for married filing jointly).
- Premium Tax Credit: If you buy health insurance through the Health Insurance Marketplace, you may be eligible for refundable credit based on your income and the cost of your healthcare plan.
- Child and Dependent Care Credit: allows working parents to claim 20%–35% of qualified child care expenses, capped at $3,000 for one person or $6,000 for two or more, resulting in a maximum credit of $1,050 to $2,100. Eligible dependents must be under age 13 or incapacitated. The credit amount depends on income and the percentage of childcare expenses paid.
- Fuel Tax Credit: If you purchase fuel used for off-highway business and farming purposes, you may be able to claim this credit, which is refundable for certain uses.
Story by Medora Lee, USA Today via Reuters Connect
