Filing season tax strategies for individual clients

For individual clients, tax planning doesn’t stop on Dec. 31. Return filing season still offers a limited but meaningful window to reduce a client’s prior year tax liability, if you know where to look. The key is focusing on strategies that remain available during filing season for the tax year just ended, not on broad planning ideas that apply prospectively.

This article focuses on two of the most effective post-year-end tools for individual taxpayers: traditional individual retirement account (IRA) and health savings account (HSA) contributions. These strategies are powerful but frequently overlooked when returns are prepared under time pressure.

Why filing season planning still matters

Many clients assume tax planning must be completed by year-end. In reality, several provisions in the tax code allow certain elections and contributions to be made after the calendar year closes, but before the return’s original due date, without extensions. For practitioners, this creates an opportunity to add value during filing season by identifying actions that still reduce last year’s tax bill.

That opportunity is narrow. Most post-year-end strategies revolve around contributions that can be designated for the prior year and must be handled correctly to avoid reporting errors or penalties.

Traditional IRA contributions after year-end

Traditional IRA contributions remain one of the most familiar, and most misunderstood, post-year-end planning tools.

Eligible taxpayers can make a deductible traditional IRA contribution for the prior tax year up until the due date of the return, not including extensions (i.e., April 15, 2026, for the vast majority of individual filers). The contribution must be clearly designated for the previous year and reported correctly on the tax return.

Deductibility depends on several factors, including filing status, modified adjusted gross income, whether an employer retirement plan covers the taxpayer or spouse, and the timing of the contribution designation for the prior year. Phaseouts apply, and failing to evaluate coverage status is a common source of errors.

These topics are covered in detail in our upcoming webinar, Tax Strategies for Individuals After Year-End (Feb. 12, 2-3 p.m CT, or available on-demand), focused on post-year-end IRA and HSA planning during filing season:

• Determining eligibility for a deductible IRA contribution
• Applying the correct contribution limits, including catch-up amounts
• Reporting the deduction accurately on the return
• Identifying and correcting excess contributions before penalties compound

HSA contributions during filing season

Health savings accounts offer another powerful filing season planning opportunity. Like traditional IRAs, HSA contributions for the prior year can be made up until the due date of the return, without extensions, provided the taxpayer was HSA-eligible during the prior tax year.

HSA contributions are especially valuable because they’re deducted as an adjustment to income (“above-the-line”) and aren’t subject to income phaseouts. That makes them relevant for a wide range of clients, including those who don’t itemize.

These topics are covered in detail in our upcoming webinar focused on post-year-end IRA and HSA planning during filing season:

• Confirming HSA eligibility based on coverage and other health plan rules
• Applying contribution limits correctly, including family coverage and age-based adjustments
• Reporting contributions and deductions accurately
• Identifying excess contributions and correcting them before penalties apply

Other filing season opportunities to keep in mind

While IRAs and HSAs are two of the most effective filing-season tools, experienced preparers know those aren’t the only items worth reviewing during filing season. In practice, many returns benefit from a quick scan for other issues that can still be addressed for the prior year.

For example, qualifying retirement contributions may also result in eligibility for the saver’s credit, depending on income and filing status. In other cases, filing season is the first time a preparer sees that withholding was significantly off, prompting a Form W-4 review for the current year as a forward-looking planning step.

State-specific deductions, such as those for §529 plan contributions or education credits, can create additional filing season opportunities. Items identified during return preparation may affect the current return or lead to a broader planning conversation. Because state rules vary, some deductions depend on timing, making it important to distinguish current-year action items from forward-looking planning.

Avoiding common filing season pitfalls

Post-year-end strategies come with tight rules and deadlines. Missteps often involve excess contributions, incorrect year designations, mismatches in reporting across forms and failures to correct errors before penalties accrue. Filing season pressure only increases these risks.

That’s why a focused approach matters. Rather than trying to cover every possible tax strategy, it’s more effective to concentrate on the areas where filing-season action clearly moves the needle for individual clients.

Put these strategies to work this filing season

Traditional IRA and HSA contributions remain among the most practical tools available after year-end, but only when eligibility and contribution limits are handled correctly, along with accurate reporting and contribution timing. NATP’s upcoming webinar is designed to help you quickly identify opportunities, apply the rules with confidence, resolve issues efficiently and avoid common filing-season errors.

Join us for Tax Strategies for Individuals After Year-End, Feb. 12, 2-3 p.m CT, or available on-demand.