Tax season can be a stressful time, especially as April draws near and that looming filing deadline starts to feel all too real. Whether you’re scrambling to gather receipts, unsure about what forms you need, or simply dreading the numbers, you’re not alone. Millions of Americans feel the same annual pressure to finalize their returns, hoping they haven’t missed a crucial deduction or made a costly mistake. But don’t worry—there’s still time to take action. In fact, these final weeks can be an opportunity to lower your taxable income, take advantage of overlooked deductions, and potentially increase your refund.

From retirement contributions to energy credits and charitable donations, there are plenty of last-minute strategies that can make a real difference. It might seem overwhelming, but with a little organization and the right information, you can finish strong—and maybe even come out ahead.

Why Maximizing Deductions Matters

Tax deductions help lower your taxable income, which means you could pay less in taxes overall. While there are many deductions to take advantage of throughout the year, there are also opportunities to make deductions at the last minute. From retirement contributions to charitable giving, these strategies can make a real difference in how much you owe—or how much you get back.

By acting quickly and smartly, you can still maximize your deductions while ensuring you stay compliant with tax laws.

Last-minute Moves to Maximize Deductions

1. Contribute to Retirement Accounts

Did you know you can still contribute to certain retirement accounts for the previous tax year, even if it’s past December 31? This is one of the easiest and most effective ways to reduce your taxable income.

  • Traditional IRAs
  • Contributions to a traditional IRA are tax-deductible, depending on your income and whether you or your spouse are covered by a workplace retirement plan. You can still contribute up to $6,500 for the prior year ($7,500 if you're 50 or older) until the tax-filing deadline this April.
  • Health Savings Accounts (HSAs)
  • If you have a high-deductible health plan (HDHP), consider maxing out contributions to an HSA. For the prior tax year, you can contribute up to $3,850 for individuals or $7,750 for families. Contributions are tax-deductible and grow tax-free.

Pro Tip: Double-check eligibility requirements for these accounts to ensure your contributions qualify. Every dollar you contribute reduces your taxable income while helping to secure your financial future.

2. Make Charitable Donations

Charitable giving is one of the most rewarding ways to lower your tax liability. Donating to qualified 501(c)(3) organizations can provide you with a deduction if you itemize your taxes.

Here’s how to maximize your giving:

  • Write a check or make an online donation before April to claim it on your current tax return.
  • Donate household goods, clothing, or similar items to organizations like Goodwill. Keep receipts and make a detailed list of donated goods.
  • Consider donating stocks or securities. This can save you from paying capital gains taxes while providing a deduction for the investment’s fair market value.

Reminder: Be sure to get a receipt or acknowledgment from the charity to validate your deduction.

3. Organize Deductible Expenses

One of the easiest ways to ensure you take full advantage of deductions is to get organized. If you’ve been sitting on a pile of receipts all year, now is the time to review them for deductible expenses.

Some items to look for include:

  • Medical Expenses: Deduct out-of-pocket medical, dental, and vision costs that exceed 7.5% of your adjusted gross income (AGI).
  • Home Office Deduction (if self-employed): Calculate the square footage of your working space and deductible items like supplies, utilities, and internet.
  • Job-related Costs (for self-employed individuals): Track mileage, travel, and equipment related to your business.

Quick Tip: Use apps or software to help categorize and total your expenses. This will streamline your tax filing process and might even reveal deductions you hadn’t considered.

4. Maximize Education-related Deductions and Credits

If you or a dependent incurred education costs during the previous year, don’t overlook these money-saving opportunities:

  • American Opportunity Tax Credit (AOTC): This credit offers up to $2,500 for undergraduate tuition, fees, and course materials.
  • Lifetime Learning Credit (LLC): Worth up to $2,000, this credit can offset costs for tuition and career development courses.
  • Student Loan Interest Deduction: If you paid interest on student loans, you might qualify to deduct up to $2,500, even if you take the standard deduction.

5. Prepay Property or Estimated Taxes

Homeowners could benefit from prepaying property taxes or estimated state taxes before the federal deadline. Even if payments are technically for the current year, they might still reduce your federal tax liability for the prior year if properly documented.

6. Offset Gains with Losses

If you sold investments for a profit last year (capital gains), you can offset that taxable income by using capital losses. This strategy, called tax-loss harvesting, involves claiming losses from underperforming investments to balance out the gains.

Important Note: You can deduct up to $3,000 in losses against ordinary income after offsetting gains. Anything over that can be carried forward to future years.

7. Check for Any Overlooked Tax Credits

Don’t leave money on the table! Tax credits are more valuable than deductions because they reduce your tax bill dollar for dollar. Some often-overlooked credits include:

  • Earned Income Tax Credit (EITC): Available to low- and moderate-income workers and families.
  • Child and Dependent Care Credit: Covers childcare costs while you work or attend school.
  • Residential Energy Credits: If you made energy-efficient updates to your home, like adding solar panels or installing energy-efficient windows, you could qualify for a credit.

8. File an Extension (If Necessary)

If you’re rushing and feel overwhelmed, filing an extension buys you extra time to get organized. While this won’t delay your deadline for paying taxes owed, it can prevent penalties for late filing. Remember, you’ll still need to estimate your tax liability when requesting an extension.

Take Action Today!

By tackling even a few of these strategies, you can make your tax experience less stressful and more rewarding. Here’s a quick checklist to get started:

  • Review your retirement and health savings contributions.
  • Gather receipts and documentation for charitable donations and expenses.
  • Double-check education-related expenses and tax credits.
  • Consult a trusted tax professional if you’re unsure about maximizing deductions or need help filing.