As we enter the 2025 tax filing season, it’s smart to keep a few things in mind. Each year, the IRS makes standard inflation-adjusted changes to more than 60 tax provisions to keep inputs in line with changes related to cost-of-living.

However sometimes there are “known” unknowns hinging on the governmental administration, such as the impact of the expiration of the Tax Cuts and Jobs Act at the end of the year.

Fortunately, you can take charge of your finances to set yourself up for success! Check out these tax planning strategies and feel confident about your future.

Consider hiring a tax professional

Depending on how complicated your tax situation is, hiring a tax professional can be invaluable. It can save you money and time and ensures that your tax returns are comprehensive and accurate.

Review your W-4 withholding amount

Make sure your federal withholding is properly updated. Major life changes (marital status, personal or family status, or the birth of a child) can dramatically alter your tax obligations. A failure to update can result in over-withholding, which leads to a larger refund at tax time than necessary. Conversely, losing benefits (like a Child Tax Credit) could increase your taxable income and require a withholding adjustment to avoid underpayment penalties.

Explore tax credits and deductions

Credits and deductions can potentially help lower your tax bill OR increase your refund. Make sure you get all the credits and deductions you qualify for.

Put money in a traditional or Roth IRA

• Take advantage of a traditional 401(k), to lower the amount of tax you owe now. Instead, you’ll owe taxes on these accounts when you withdraw funds during retirement.
• A Roth IRA tax advantage lies in the fact that your withdrawals in retirement are not taxed. Paying your taxes upfront allows your contributions to remain non-tax-deductible.

Set up a payment plan (if needed)

If you end up needing to pay more taxes than you anticipated, explore your payment options with the IRS. There is what’s called an “Online Payment Agreement” tool on the IRS homepage (or you can apply by phone or mail).

These tips can help you have a more satisfying tax outcome this year. Remember that

financial wellness is a journey, and we are always learning new strategies. Check out our BALANCE Financial Fitness and Banzai programs to continue gaining financial confidence. Our BALANCE program provides comprehensive financial education and counseling services at no cost to you. Banzai is an award-winning, interactive content platform that teaches real-world finance. Used by over 100,000 teachers in over 50% of U.S. schools, Banzai has a wide range of content that covers the fundamentals of personal finance – including saving, spending, borrowing, investing, and more!

At Nusenda Credit Union, we’re dedicated to improving our members’ financial well-being and supporting them through affordable products, friendly service, community involvement, and financial education. We'd love to find other ways to help you save money. You can reach us at 505-889-7755 (800-347-2838 outside the Albuquerque area) or make an appointment to meet with us at any of our branch locations.