I Asked ChatGPT for Specific Steps for Lowering My Tax Bill Before I File — Here’s What It Said
Written by
Laura Beck
Edited by
Molly Sullivan
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Tax season is here and I’m looking at my numbers thinking there has to be something I can do to lower what I owe. The year already ended, so most tax moves are off the table. But I wanted to know if there were any last-minute strategies I could still use before filing.
I asked ChatGPT for specific steps to lower my tax bill even though 2025 is over. Here’s what it told me.
You Can Still Make Retirement Contributions
The first thing ChatGPT brought up was retirement accounts. Even though Dec. 31 has passed, you have until the tax filing deadline to contribute to certain accounts and claim the deduction for last year.
Traditional IRAs let you contribute up until April 15 for the previous tax year. The contribution lowers your taxable income dollar for dollar, which means if you put in $6,500, your taxable income drops by $6,500.
If you’re self-employed, ChatGPT said SEP IRAs and Solo 401(k) plans have even bigger deduction potential. These accounts let you contribute way more than a traditional IRA, sometimes tens of thousands of dollars depending on your income.
The deadline for these contributions is usually April 15, though it can be extended in some cases. ChatGPT called this one of the highest impact moves you can make if you haven’t maxed out yet.
Fund an HSA If You Had a High-Deductible Health Plan
Health savings accounts are another account you can contribute to after the year ends. If you had a high-deductible health plan in 2025, you can still fund your HSA up to the filing deadline and claim the deduction.
ChatGPT said HSA contributions are tax-deductible, the money grows tax-free and withdrawals for medical expenses are tax-free. It called this “one of the most tax-efficient tools in existence,” which sounds like marketing speak but isn’t wrong.
If you’re eligible for an HSA and didn’t max it out, this is an easy way to cut your tax bill.
Harvest Capital Losses To Offset Gains
If you sold investments at a loss in 2025, you can use those losses to offset capital gains. ChatGPT explained that if your losses are bigger than your gains, you can use up to $3,000 of the excess to offset ordinary income. Anything left over carries forward to future years.
This one only works if you actually sold investments at a loss. You can’t go back and sell something now to claim a loss for 2025. But if you already took losses during the year, make sure you’re using them to reduce your tax bill.
Check If Itemizing Beats the Standard Deduction
Most people take the standard deduction because it’s easier and usually bigger than itemizing. But ChatGPT said it’s worth running the numbers to see if itemizing would save you more.
Itemizable deductions include mortgage interest, state and local taxes up to $10,000, charitable donations and medical expenses above a certain percentage of your income.
If you’re close to the standard deduction amount, itemizing could swing your tax bill in your favor. ChatGPT said this is especially true if you had big medical expenses or made large charitable donations.
Don’t Forget Charitable Giving Strategies
If you made charitable donations in 2025, make sure you’re claiming them. ChatGPT said cash donations count if you have receipts. Donating appreciated stock is even better because you avoid capital gains tax and still get the deduction for the full value.
If you’re 70½ or older, you can make qualified charitable distributions from your IRA, which count toward your required minimum distribution and aren’t included in your taxable income.
Education Credits Can Save You Thousands
ChatGPT flagged education credits as something people forget about. If you or a dependent paid tuition in 2025, you might qualify for the American opportunity credit or the lifetime learning credit.
These are credits, not deductions, which means they reduce your tax bill dollar for dollar instead of just lowering your taxable income. If you qualify, this is one of the better ways to cut what you owe.
Self-Employed People Have More Options
If you’re self-employed or freelance, ChatGPT said there are a bunch of deductions people miss. Home office expenses, business-use portions of internet and phone bills, software subscriptions, mileage and health insurance premiums all count.
Health insurance premiums are a big one if you’re self-employed. You can deduct them even if you don’t itemize.
ChatGPT also reminded me that retirement contributions reduce both income tax and self-employment tax, which makes them even more valuable if you work for yourself.
Your Filing Status Might Matter More Than You Think
Most married couples file jointly, but ChatGPT said there are edge cases where filing separately or claiming head of household status saves money. This mostly comes up with medical expenses or income-based credits.
It’s worth checking both ways if your situation is complicated.
State Taxes Count Too
ChatGPT reminded me that state taxes have their own deductions, credits and retirement exemptions. Sometimes the state refund is bigger than the federal one depending on where you live.
Don’t ignore your state return just because you’re focused on federal taxes.
Run Your Return Twice Before Filing
The last piece of advice ChatGPT gave was to run your return multiple times with small changes to see what moves the numbers. Try different IRA contribution amounts. Switch between itemizing and the standard deduction. See what actually lowers your bill.
Most tax software has a “what-if” feature that lets you do this without filing multiple times. It takes an extra 10 minutes, but it might save you hundreds of dollars.
More From GOBankingRates
