Strategic Tax Planning After Filing Season
What to Do Now for a Better Financial Future
TLDR: Now that tax filing season is over, it's the perfect time to implement strategic planning for the rest of 2025.
This article covers five actionable steps to take:
- Reviewing your tax return for planning opportunities
- Adjusting your withholding
- Setting up better recordkeeping systems
- Planning for estimated tax payments
- Exploring retirement contribution strategies that can save you money when next tax season arrives.
With the April 15th tax deadline recently behind us, many people breathe a sigh of relief and file their tax documents away until next year. However, financial advisors know that the weeks following tax season present a golden opportunity for proactive planning. The insights from your recently filed return can guide smart financial decisions for the remainder of the year.
Use Your Recent Tax Return as a Planning Tool
Your just-filed tax return contains valuable information about your financial situation. Instead of filing it away, use it as a reference point for improvement:
- Did you receive a large refund? This may indicate overwithholding.
- Did you owe a significant amount? You might need to adjust your withholding or estimated payments.
- Were you surprised by any deductions you couldn't take or credits you didn't qualify for? This identifies planning opportunities.
Pro Tip: Schedule a mid-year review with your financial advisor to analyze your tax return and identify optimization opportunities.
Adjust Your Withholding
If you received a large refund or owed a significant amount when filing, now is the ideal time to adjust your withholding by submitting a new W-4 to your employer. While many people enjoy receiving a refund, remember that it essentially means you've given the government an interest-free loan throughout the year.
For those who owed money, updating your withholding now prevents potential penalties and the stress of coming up with a large payment next April. The IRS Tax Withholding Estimator can help determine the appropriate withholding for your situation.
Implement Better Recordkeeping Systems
If you found yourself scrambling to find receipts or documentation during tax season, use this post-filing period to establish better systems:
- Create digital folders for organizing receipts and tax documents
- Set up specific email folders for financial notifications
- Consider using expense-tracking apps that categorize deductions throughout the year
- Review your charitable giving strategy and documentation process
Implementing these systems now will make next year's tax preparation significantly easier.
Case Study: One of my clients saved over 10 hours of preparation time and identified an additional $3,200 in deductions after implementing a systematic digital receipt tracking system.
Plan for Estimated Tax Payments
For self-employed individuals, business owners, or those with significant investment/non-W2 income, quarterly estimated tax payments are essential to avoid underpayment penalties. The next estimated payment deadlines for 2025 are:
- Second quarter: June 15, 2025
- Third quarter: September 15, 2025
- Fourth quarter: January 15, 2026
Review your income projections for the year and adjust these payments accordingly. Remember that estimated payments should be based on your expected income for the current year, not just last year's numbers.
Maximize Retirement Contributions
With most of the year still ahead, you have time to strategically contribute to retirement accounts. Consider:
- Increasing your 401(k) contributions to take full advantage of employer matching
- Opening or funding an IRA (Traditional or Roth)
- Exploring SEP IRA or Solo 401(k) options if you're self-employed
For 2025, contribution limits are:
- 401(k)/403(b): $23,500 (+ catchup for those 50 or older)
- IRA: $7,000 ($8,000 if 50 or older)
Review Your Investment Strategy
The post-tax season period offers a perfect opportunity to review your investment portfolio with taxes in mind:
- Consider tax-efficient investment strategies
- Evaluate whether tax-loss harvesting might benefit you throughout the year
- Review the location of different investments (tax-advantaged vs. taxable accounts)
Remember that not all investment income is taxed the same way—qualified dividends and long-term capital gains receive preferential tax treatment compared to short-term gains and ordinary income.
Conclusion
The weeks following tax season provide a unique window for strategic financial planning. By implementing these suggestions now, you'll set yourself up for greater financial success and potentially lower your tax burden for the current year.
Don't wait until December to start thinking about tax planning—the most effective strategies are implemented consistently throughout the year. Take time this week to review your recent tax return and create an action plan that will serve your financial goals for the remainder of 2025.
This article is for informational purposes only and is not intended as tax or legal advice. Please consult with a qualified tax professional regarding your specific circumstances.
