5 Moves You Should Make Immediately After Filing Taxes To Reduce Next Year's Bill
If you paid too much in taxes this year, there are a few things you can do immediately after filing to reduce next year's bill.
Here's what to do.
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Have a Tax Pro Review This Year's Return
Even if you already filed, there might be missing money in this year's return. According to the Internal Revenue Service (IRS), Americans miss out on billions of dollars in missed tax refunds every year, so it can be a good idea to get a second opinion before planning for next year.
Consider hiring a tax pro to review your return and potentially filing an amended return if they find additional savings.
Increase Your Retirement Contributions
If you have access to a retirement plan like a 401(k) or traditional individual retirement account (IRA), you may be able to lower your taxes by increasing your contributions to each account.
For your workplace 401(k), you can simply ask the payroll department to bump up your contributions (say, from 4% to 6% of your salary). For a traditional IRA, you can set up automatic contributions to your account, and if you qualify, you might be able to deduct those contributions on next year's return.
This is the simplest way to lower your taxes and save for the future at the same time.
Adjust Your Tax Withholding
If you ended up owing money in taxes for 2025, you may need to adjust your withholding from your paycheck. But it can also be a problem if you get too big of a refund. This may be from withholding too much from your paycheck, essentially giving the IRS an interest-free loan for the year.
You can fix these withholding mistakes by reviewing your most recent tax return and using the IRS Tax Withholding Estimator to see what you should select as a withholding amount on your W-4 with your employer. The goal is to get closer to break-even so you avoid a surprise tax bill (or have paychecks that are too small).
Open or Fund a Health Savings Account (HSA)
If you are enrolled in a high-deductible health plan (HDHP), you might qualify for opening a health savings account (HSA). These accounts allow you to save money for medical expenses and save on taxes at the same time.
HSAs also offer triple tax advantages, as contributions are typically tax-deductible, the money grows tax-free and withdrawals for qualified medical expenses are also tax-free. You can contribute up to $4,400 on an individual health plan or $8,750 on a family health plan.
You can review eligibility rules and contribution limits in the IRS guide to HSAs.
Plan for Next Year's Tax Credits
After filing your return, review any tax credits that could apply to your situation next year. Credits like the child tax credit, American opportunity credit and earned income tax credit EITC can lower your taxes owed by $1,000 or more.
For example, if your family is expecting a child this year, you may qualify for the child tax credit. Or if you plan on going back to college, make sure to keep your documentation for potentially claiming the American opportunity tax credit.
You can review available credits in the IRS guide to credits and deductions for individuals.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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