Post-Tax Season Steps: Turning Your Tax Return into a Smart Money Plan

The annual tax return often feels like a finish line – a chore to complete, something to just get done. But what if you looked at it differently? Instead of just a task for the government, your tax return gives you a clear picture of your money from the past year. For those who think ahead, it’s a fantastic starting point to review and improve your money plans for the year ahead. 

Think of it like checking your car’s mirrors to help you drive better. After your return is filed – and you’re no doubt feeling relieved – it’s the perfect time to really look at what those numbers tell you about your financial health and how you can make your money work even harder for you. 

Are You Paying the Right Amount Throughout the Year? 

Did you get a big refund this year? Did you owe a lot more than you expected? Both situations, while common, show opportunity for improvement. A large refund means you basically gave the government an interest-free loan all year – that’s money that could have been growing for you. Owing a lot, on the other hand, might mean you didn’t set aside enough, which may have resulted in extra fees. 

Now is a good time to adjust how much tax is taken out of your paycheck or how much you pay in estimated taxes if you’re self-employed. Your financial advisor can help you fine-tune these amounts to make sure you’re paying just enough, keeping more of your money in your pocket throughout the year, and avoiding any unwelcome surprises next April. 

Check In on Your Retirement Savings 

Your tax return also provides a clear look at your saving habits. Did you put as much as you could into your 401(k), IRA, or other retirement accounts? Just a reminder, for 2025, you can put up to $23,500 into a 401(k), with an extra $7,500 if you’re 50 or older, and an even higher $11,250 if you’re between 60 and 63.  

If you didn’t max out these contributions, take time now to plan how to increase them for the rest of the year. Every dollar you wisely save not only strengthens your future but can also provide immediate tax benefits. Make sure you’re making the most of these powerful savings tools. 

Make Your Investments More Tax-Smart 

Your tax forms can also show the tax impact of your investments. Are you holding investments that generate a lot of taxes in regular accounts? Are you taking full advantage of special accounts like Roth IRAs that allow your money to grow and be taken out completely tax-free in retirement? 

By looking closely at how tax-smart your investments are, your advisor can provide suggestions on where to put different types of investments (which accounts are best for which assets) and look for chances to harvest losses to reduce taxes. The main goal here is to help your money grow as much as possible, cutting down on the amount taxes take away. 

Explore Smart Ways to Give to Charity 

For many, giving back is a core value. Your tax return clearly shows your charitable contributions. There are incredibly smart, tax-friendly ways to give. Beyond simple cash donations, giving appreciated assets like stocks can help you avoid paying taxes on the gains while still getting a tax deduction for the full value of your donation. Strategies like Donor-Advised Funds (DAFs) or even certain types of charitable trusts can offer significant tax benefits while perfectly matching your giving goals. Your advisor can help you explore how your generosity can also be a very wise financial move. 

Consider Smart Gifting Strategies for Family 

The annual gift tax exclusion for 2025 allows you to give $19,000 to each person without it triggering any gift tax liability or reporting requirements. counting against your lifetime gift limit. This means a married couple can collectively give $38,000 to an individual without any tax implications. Your tax return indirectly shows how much wealth is staying within your estate. 

If you’re thinking about passing wealth to the next generation, find some time to have a deeper discussion about gifting strategies. Gifting isn’t just about reducing potential estate taxes later; it’s about seeing your loved ones benefit from your generosity now and building a lasting family legacy. Consider simple annual gifts, covering educational or medical expenses directly, or more involved arrangements like certain trusts designed to pass wealth efficiently. 

Don’t Let Your Tax Return Just Sit in a Drawer

Instead, use it as a powerful guide to review, adjust, and truly improve your overall money plan. Connect with us to transform your post-tax season from a just a task into a powerful opportunity for financial advancement. 

Content in this material is for general information only and not intended to provide specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.  

A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.