How To Maximize Your Tax Refund Before Any Trump Tax Changes Take Effect
Written by
Jake Safane
Edited by
Jenna Klaverweiden
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One of the signature pieces of legislation from Donald Trump’s first term was the 2017 Tax Cuts and Jobs Act, which overhauled many areas of the tax code. However, major provisions of that law expire at the end of 2025, and the Trump administration appears intent on passing new tax legislation that will affect taxes in 2026 and beyond.
With that in mind, taxpayers may want to make some adjustments now to try to maximize their tax refunds. Some moves could potentially be made before the April 15 deadline this year, while others you might want to plan for throughout 2025 for next year’s tax filing, before any tax laws potentially change.
Taking Energy-Related Credits
As part of the Inflation Reduction Act passed under President Joe Biden, individuals gained access to new tax credits for some energy-related purchases. For example, credits were available to offset some of the costs associated with installing solar panels in a home or adding an electric vehicle (EV) charger at home.
However, these types of tax credits could be on their way out if the Trump administration passes new tax legislation. The president has also voiced support for getting rid of the $7,500 EV tax credit.
So taking these energy-efficiency credits now could be smart. “I would definitely recommend filing any energy credits you might have available if you could take them in either 2024 or 2025, as these credits are likely to get cut,” said Crystal Stranger, senior tax director and CEO at Optic Tax.
Maximizing Retirement Contributions
Another tax move to consider is putting more money into tax-deductible retirement accounts, if eligible.
IRA “or other deductible retirement contributions are a good idea if you are qualified to pay into a deductible account and lower your taxes for 2024,” Stranger said.
Because you can make IRA contributions for tax year 2024 up until April 15, 2025, that means there’s still time to increase your tax refund by putting more money into this retirement account.
Lowering your taxable income this way could be particularly helpful before potential Trump tax changes, as Stranger noted that tax rates could be lower for most workers next year. “So maximizing these now may be helpful in overall savings strategy,” she said.
In other words, the more you can lower your taxable income in years when tax rates are higher, the more you can potentially save.
Buying a House
Lastly, you may be able to maximize your tax refund next year or subsequent years (it’s generally too late for tax year 2024) by buying a house in 2025.
“[It] could be a good year to buy a house, as it seems highly likely in the upcoming tax law changes that the SALT cap will be increased to allow for significantly more [deductions],” she said.
Right now, you can deduct only $10,000 per year in state and local taxes (SALT), which was put in place from Trump’s 2017 tax law. However, he has suggested raising that cap, though the details are unclear. Still, if the cap goes higher, that would generally mean that homeowners could deduct more.
Homeownership can also come with tax benefits, such as mortgage interest deductions. While you shouldn’t necessarily buy a house just for tax purposes, it could be a nice bonus if you can afford the mortgage anyway.
In some areas, it’s a buyer’s market, according to Stranger. “Interest rates are starting to drop, so you could get a great deal on a house, then refinance in a couple years if rates drop substantially,” Stranger said.
In the year of purchase, she noted, homeowners can also often deduct the amount paid for points, which is a mortgage term that effectively means an upfront payment that lowers the mortgage rate. “So it could be a big deduction this year,” she said.
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