Last-Minute Tax Strategies for High-Earning Professionals
Rohit Padmanabhan

Last-Minute Tax Strategies for High-Earning Professionals: What You Can Still Do Before Filing

Tax season is in full swing, and if you're a high-earning professional—whether you're a physician, attorney, business owner, or tech executive with equity—your tax situation is likely more complex than the average filer. The good news? While many tax-saving strategies had to be executed before December 31st, there are still key moves you can make to optimize your tax return, reduce your tax burden, and avoid common pitfalls before the April 15th deadline. This guide walks you through what you can still control before filing your 2024 taxes.

 

 

1. Maximize IRA Contributions Before the April 15th Deadline

While 401(k) contributions had to be made by year-end, you can still contribute to a traditional IRA or make a backdoor Roth IRA contribution for 2024 until April 15th, 2025. The contribution limit is $7,000 ($8,000 if you're 50 or older). While traditional IRA deductibility depends on income limits, a non-deductible IRA contribution can still be converted into a Roth IRA via the backdoor strategy, allowing for future tax-free growth.

 

2. Contribute to a Health Savings Account (HSA) for 2024

If you were enrolled in a high-deductible health plan (HDHP) in 2024, you can still make an HSA contribution before April 15th, 2025. The limit is $4,150 for individuals and $8,300 for families. Contributions are tax-deductible, and withdrawals for qualified medical expenses are tax-free, making this one of the best last-minute tax-saving tools available.

 

3. Review and Optimize Tax Payments to Avoid Penalties

High earners often have underpayment penalties due to income fluctuations, equity compensation, or business earnings. If you failed to pay enough estimated taxes in 2024, consider using IRS Form 2210 to calculate if you qualify for the annualized income installment method, which can help reduce penalties. Additionally, if you’re at risk of penalties, you can make a 2024 IRA or HSA contribution to help offset taxable income.

 

4. Identify and Deduct Business and Professional Expenses

For business owners and independent contractors, now is the time to ensure you’re capturing all deductible expenses. Review your records for any unreimbursed business expenses, professional dues, continuing education costs, or necessary home office expenses (if eligible). If you have an S-Corp and missed making your 401(k) contributions before year-end, consider whether you can still make a profit-sharing contribution if your plan allows.

 

5. Consider Filing Strategies: Roth Conversions and Amending Past Returns

If you’re on the cusp of a lower tax bracket due to fluctuations in income, you might still have time to execute a Roth IRA conversion before filing. Additionally, review past returns for missed deductions or credits—many tax benefits can be claimed retroactively by amending prior years’ returns, which can result in a refund.

 

While many tax-saving strategies had to be in place before December 31st, there are still meaningful actions you can take before filing. By maximizing IRA and HSA contributions, reviewing estimated tax payments, ensuring all deductible expenses are claimed, and considering strategic filing options, you can still optimize your tax situation. If your return is complex, working with a CPA or financial advisor can help ensure you’re making the most of every available tax benefit before you file.

 

 

 

 

Disclaimer

This content is for informational purposes only and should not be considered tax, legal, or financial advice. Every individual's financial situation is unique, and tax laws are subject to change. Please consult with a qualified tax professional or financial advisor to discuss your specific circumstances before making any tax-related decisions.