There Are Still 2 Ways to Lower Your 2025 Tax Bill -- and They Come With a Bonus Benefit for Retirement

Taxes aren't known for stirring up positive emotions. If you're lucky, you may just have to suffer through an hour or two of boredom. But for some, taxes also trigger anxiety as they wait to hear whether they'll owe the IRS even more than they've already paid.

While most of the factors that affect your 2025 tax liability are already locked in, there are still two ways you may be able to slash your bill. They're not options for everyone, but if you can pull them off, the financial reward could go well beyond a little tax savings.

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How saving more for retirement could save you more on your 2025 taxes

Contributing money to tax-deferred retirement accounts, like traditional IRAs and 401(k)s, gives you a tax deduction equal to your contribution in the year you make it. For example, if you put $5,000 in a traditional IRA, the IRS would subtract $5,000 from your taxable income for that year.

The primary advantage of this is that your money can grow for longer before you have to worry about sharing any of it with the government. But you can also leverage this benefit to save a little on your taxes in the lead-up to the April 15th filing deadline.

It is still possible to make a 2025 contribution to your IRA, though not to your 401(k). If you want your IRA contribution to reduce your tax bill, make sure you use a traditional IRA. For 2025, you can save up to $7,000 to an IRA, or $8,000 if you were 50 or older by the end of the year. Make sure your new contribution won't push you over this limit, or you could face tax penalties that could undermine your savings.

You may need to contact your IRA plan administrator to let them know that you want to make a prior-year contribution. Otherwise, it might default to a 2026 contribution. Do not file your tax return until you've completed your prior-year contribution, or else you'll have to file an amended return.

Or save your money for future healthcare costs instead

In addition to IRA savings, you might also be able to make a prior-year HSA contribution. You may only do this if you had a health insurance plan with a deductible of $1,650 or more for an individual or $3,300 or more for a family in 2025.

You can save up to $4,300 in an HSA for 2025 if you have a qualifying individual health insurance plan or $8,550 if you have a qualifying family plan. Those aged 55 or older by the end of last year can add another $1,000 to these limits.

HSA contributions also reduce your taxable income for the year, and you don't have to wait until retirement to use them. If you spend the money on qualifying medical expenses at any age, it's tax-free.

But stashing retirement savings here could be a wise move if you don't need the money right away. Just make sure you choose a provider that will enable you to invest your funds. This is key if you want your HSA's growth to keep up with the rest of your retirement savings.

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