Tax season is here again, and for households with higher incomes, things can get complicated quickly. The good news? With some smart planning, you can take advantage of the latest updates, stay organized, and keep more of your money working for you.
There are also changes to a few credits and accounts. The Earned Income Tax Credit is now up to $8,046 for families with three or more children, while the adoption credit climbs to $17,280. Medical savings accounts are expanding too, with higher deductible minimums and maximums for out-of-pocket expenses.
Key deadlines remain important to keep in mind. January 29 marks the opening of the filing season, April 15 is the traditional Tax Day, and quarterly estimated payments are due in June, September, and October. Missing these dates can mean penalties you don't want to deal with, so it's worth adding them to your calendar now.
To make filing smoother, gather everything you'll need in advance—W-2s, 1099s, investment statements, mortgage and charitable donation records, and anything related to retirement contributions or distributions. Business owners and self-employed individuals should also have expense records and income summaries ready. Having it all in one place will save you time and help avoid mistakes.
Once your paperwork is in order, it's time to think strategy. Maxing out retirement contributions is still one of the most effective ways to cut your tax bill. Charitable giving can also make a big difference, especially if you use tools like donor-advised funds. High earners should also keep an eye on their portfolios—harvesting losses, shifting toward tax-efficient investments, or even preparing for estate tax changes coming in 2026 could pay off.
While it's possible to tackle all of this on your own, working with a tax professional is often worth it. The rules get complicated fast, and a good advisor can help uncover savings opportunities, ensure compliance, and keep you prepared for what's coming down the line.
The 2025 season may feel like a lot, but being proactive makes all the difference. Start early, stay organized, and lean on smart strategies so you can head into tax season with confidence.
Read more here to see how the "One Big Beautiful Bill" act will impact you and your taxes.