I’m a Tax Expert: These 6 Moves Could Save You Hundreds This Season and Beyond
Like most taxpayers, you enter tax season with a singular goal — to save as much money as possible. It’s a good goal. But all the ins and outs of the tax code might make you feel like it’s difficult to achieve. It’s not, as long as you have the right moves.
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Smooth moves aren’t just for the dance floor or the basketball court — they’re also for filing your taxes. To teach you those moves, MoneyLion approached Gene Bott, a CPA, tax advisor and partner at Tax Hive. Bott divided his advice into moves to make now and moves to make for the future.
Tax Moves to Make Now
Move 1: Contribute to a Retirement Account
Contributing to a retirement account is a smart money move at any time of year, but it takes on new urgency during tax season. Bott emphasizes the importance of making tax-deferred retirement contributions for everyone — adding that it’s especially useful for people who are self-employed.
“Many taxpayers can make tax-deferred retirement contributions until they file their tax return, so long as it isn’t filed late,” he said. “If you’re a business owner, you have more options for doing this, including SEP IRAs, SIMPLE IRAs and other retirement accounts.”
Move 2: Check Your Overtime and Tips
If you work in a field where you can earn tips or overtime, you’re usually concerned with earning as much extra money as possible. Bott says you should apply the same zeal for earning those high tips and overtime to tracking what you’ve earned, since that income can now qualify for deductions from your taxable income — up to certain limits.
These changes can largely be attributed to the One Big Beautiful Bill Act, and the Internal Revenue Service website offers insights into what counts as qualified tips and maximum annual deductions. These changes are particularly important for waitstaff, bartenders, salon workers, personal trainers and gig economy workers.
“Take some time to find out if you have any qualifying tips or overtime income, and make sure your accountant knows,” he said. “I have one client who reduced his tax bill by $3,000 when I had him get me these numbers.”
That kind of savings is a reminder that clean records can lead to real money — especially if they help your preparer catch mistakes or missed opportunities.
Move 3: Look for Missing Deductions and Credits
This tax move may seem like a no-brainer: Don’t you already probe possible deductions with a fine-toothed comb? Well, you might be surprised by what you miss. Bott has some good advice: “Take some time to check. These can often be worth a lot if missed.”
In practice, that means reviewing both deductions and credits, since credits can reduce your tax bill dollar for dollar.
Tax Moves to Make Your Future Self Happy
Move 4: Consider Adding Business or Investment Income to Your Portfolio
Bott explains that the tax code is built to favor people who run businesses or make investments.
“Adding these to your portfolio can help you increase your income while reducing your overall tax rate, as long as you plan well,” he said.
Move 5: Take Advantage of an HSA
If you qualify, putting money into a Health Savings Account (HSA) can let you put money away tax-free and take it out tax-free — as long as you use it on qualifying expenses.
“That’s tax-free income to you,” Bott said. “Take advantage of it.”
Move 6: Lump (or "Bunch") Charitable Contributions Into a Single Year
You’ve got a big heart and a budget to match it. Bott suggests that you consider “spending the budget of two years in one” — or "bunching" — to help improve your tax situation over a few years.
He gives a hypothetical example:
“If you normally give $20,000 and have a $30,000 standard deduction, two years of contributions across two years may not help you much. You’d still claim the $30,000 deduction for a total of $60,000 across two years,” he said. “If you lump contributions into one year, though, you could get a $40,000 itemized deduction that year and take the $30,000 standard deduction in the other year. You gave the same $40,000, but you claimed total deductions of $70,000.”
The Bottom Line
With the right moves and some good advice, you can reach your goal of saving money during filing season — and well into the future. Putting smart strategies into motion now can take the fear out of tax time for a long time.
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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