Last Chance For Filers To Save Money Before Year-End Tax Deadlines

With the years end approaching, tax experts are urging Americans to take advantage of remaining 2025 deadlines — from retirement contributions to charitable giving — that could significantly shape next springs filings.

The rush to act comes as the 2025 tax season brings some of the biggest changes in years. New IRS inflation-adjusted income brackets, higher standard deductions, new tip and overtime deductions, and expanded contribution limits for retirement and savings accounts will reshape how much money taxpayers ultimately keep. Those shifts, paired with the Dec. 31 cutoff for several major tax-saving moves, are pushing many filers to plan now rather than wait.

“The 2025 tax season is bringing big updates, and your refund might feel the impact,” said TaxAct Vice President of Government Relations Jared Ballew. “The IRS is rolling out new income brackets, bigger standard deductions, and higher limits for retirement and savings accounts. Whether youre fresh out of college, juggling side gigs, or leveling up in your career, these changes could shift how much you keep. Thats where TaxAct comes in. We stay ahead of every new rule, update, and IRS adjustment, automatically applying the latest numbers so your return is accurate and optimized.”

Among the most consequential updates are increased contribution limits for 401(k) and IRA accounts, which taxpayers may still be able to maximize before years end. Ballew noted that “maximizing contributions within the limits of your retirement plan is one of the most prudent year-end strategies for small business owners.”

“Consider accelerating deductible expenses into December, such as purchasing necessary equipment or prepaying certain business expenses, to lower your current year tax liability,” he said. “TaxAct’s Self-Employed tier is specifically designed to guide freelancers, contractors, and small business owners through these complex deductions with step-by-step clarity.”

Ballew said the biggest filing pitfalls often start in December.

“One of the most common mistakes taxpayers make is overlooking eligible deductions and credits, from home office expenses to education credits, simply because they don’t know what qualifies or lack proper documentation,” he said. “Many filers also miss timing requirements for tax-saving strategies, such as making charitable contributions or IRA contributions before Dec. 31, or fail to adjust withholding after major life changes like marriage or starting a side gig.”

To avoid audits and headaches, he urged filers to focus on consistent documentation.

“Strong recordkeeping throughout the year, from saving receipts for business expenses to tracking charitable donations, is the foundation of a smooth, stress-free filing experience and the best defense against potential audits,” Ballew said. “The IRS generally recommends keeping tax records for at least three years, with key documents including bank statements, investment records, mortgage interest statements and mileage logs for business travel.”

Healthcare accounts present another end-of-year opportunity, according to Financial Advisor Mark Scribner of Wealth Enhancement Group, who says “FSAs and HSAs are the easiest tax advantages people overlook.”

“An FSA is use it or lose it, and every dollar you dont spend by year-end is money youre leaving on the table. HSAs are even more powerful — theyre triple tax-advantaged and one of the best long-term savings tools available,” Scribner says.

“As we head into December, even small year-end moves can lower your tax bill,” he said. “Increasing retirement contributions, making charitable donations, or taking advantage of tax-loss harvesting all help reduce taxable income and set you up for a stronger start in the new year.”

Homeowners, meanwhile, have very little time to take advantage of tax credits for energy efficiency upgrades, which are set to expire this year.

“Many homeowners have never had their attic professionally inspected, and with nearly 90% of homes under-insulated, there could be hidden risks above your head,” said Cory Lyons, brand president of Koala Insulation. “Upgrading your insulation can also save money through the federal 25C tax credit — named for the section of the IRS tax code — which allows homeowners to claim 30% of the total cost of qualifying energy-efficiency upgrades, including insulation and air sealing. The 25C credit is set to expire at the end of this year, making now the ideal time to improve your homes safety, comfort, and energy efficiency while those savings are still available.”

As the final weeks of 2025 tick down, tax experts say even small, timely decisions can have an outsized impact once filing season begins. Whether through retirement savings, business planning, year-end giving or home upgrades, the returns on preparation — literally and figuratively — are still within reach.