These Q1 Tax Moves Could Claw Back a Ton of Money From Last Year

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Tax Day will be here before you know it. If you’re worried about a looming tax bill or want to maximize your refund amount, there are Q1 tax moves you can make right now to settle up from the previous year.

According to the Tax Foundation, tax refunds could increase for millions of Americans under the Big Beautiful Bill Act, boosting the average refund by up to $1,000 and cutting individual income taxes by $129 billion in 2025.

If you want to save more of your hard-earned money, here are Q1 tax moves to consider before you file.

Make a Prior-Year IRA Contribution

You can max out your IRA contributions for the previous year until the tax filing deadline. If you’re under the age of 50, you can contribute up to $7,000 for the 2025 tax year, per IRS rules. If you’re age 50 or older, you can contribute up to $8,000.

Maxing out your retirement accounts each year can make a big difference in your retirement savings. For example, if you max out your IRA at the current $7,000 limit over 20 years with a 6% return rate, your savings could add up to $296,348, versus $169,341 if you contributed the average $4,000 most Americans with an IRA contribute per year, according to American Century Investments.

Fund a Health Savings Account

You can claim a tax deduction for contributions made to your health savings account (HSA). Contributions and withdrawals from your HSA are tax-free for eligible medical expenses, such as deductibles, copays, prescriptions, vision and dental, according to HSA Central.

You can fund an HSA for the previous tax year to get tax benefits, but you must do this before the tax filing deadline and meet high-deductible health plan (HDHP) coverage requirements.

For 2025 filings, the IRS lets you contribute up to $4,300 for self-only coverage or $8,550 for family coverage, with an extra $1,000 catch-up contribution if you were 55 or older. All contributions count toward this limit.

Take Advantage of Self-Employment Write-Offs

If you’re self-employed, there are several deductions you can use to reduce your tax liability. Self-employed income includes freelance work, contract work, gig income and earnings from a business you own or operate.

This may include:

• Home office expenses, if you use part of your home regularly and exclusively for work
• Business software, tools and subscriptions
• Phone and internet costs related to your business
• Mileage, travel and vehicle expenses used for work
• Marketing, advertising and website costs
• Professional services, such as accounting or legal fees

Check the full list of deductible self-employment expenses on the official instructions for Schedule C Form 1040.

Double-Check Tax Credits You Might Qualify For

Tax credits reduce what you owe dollar for dollar. A missed credit means you could be overpaying on your taxes.

A major tax credit, especially for low- to middle-income households, is the earned income tax credit (EITC). The IRS estimates that one in five eligible taxpayers fails to claim the EITC.

Make sure to check whether you qualify for these other common tax credits:

• Child tax credit
• Child and dependent car credit
• Education credits
• Energy efficiency credits
• Premium tax credit

Check Your Filing Status and Dependents

Major life changes can affect your tax bill. This includes changes like marriage, divorce, a new child or supporting a family member, which can all impact what you owe.

Your filing status and dependents determine your tax brackets and standard deduction, eligibility for certain tax credits and deductions and whether you qualify for credits tied to children or dependents. 

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