Built to save you money
Every saving below uses a published IRS figure for the 2025 tax year, with the official page beside it so you can check us. Nothing here is a scheme or a loophole, it is what the tax code says you may do.
A list of savings is only worth something against your figures. Answer a few plain questions and Taxmiser shows which of these actually apply to you, in your state, with the amount you would keep and the IRS form each one goes on.
These are the biggest levers for most employees and contractors, because they cut the income the IRS taxes at your top rate.
Up to 23,500 out of taxable pay, plus 7,500 more from age 50
Money going into a traditional 401(k) is taken before federal income tax, so a 24 per cent taxpayer paying in the full 23,500 keeps about 5,640 that would otherwise go to the IRS. Employer matching is on top and does not use your limit.
IRS retirement plan limitsUp to 7,000, or 8,000 from age 50
If you are not covered by a workplace plan, or your income is inside the phase-out range, a traditional IRA payment comes straight off your income on Schedule 1, whether or not you itemise.
IRS IRA contribution limits4,300 single, 8,550 family, plus 1,000 from age 55
An HSA is the only account that is deductible going in, untaxed while it grows, and untaxed coming out for medical costs. Paid through payroll it also escapes Social Security and Medicare tax.
IRS Publication 969Up to 25 per cent of net self-employment earnings into a SEP
Contractors and business owners can deduct a SEP or solo 401(k) payment, half of their self-employment tax, and their own health insurance premiums, all above the line on Schedule 1.
IRS self-employed retirement plansYou get the standard deduction or your itemised total, whichever is larger. It pays to check both every year.
15,000 single, 30,000 married filing jointly
Most people take the standard deduction, but if your mortgage interest, state and local taxes (capped at 10,000) and charitable gifts beat it, itemising on Schedule A wins. Compare both, never assume.
IRS standard deductionTurns two below-threshold years into one itemising year
Give two years of donations in a single tax year, or use a donor-advised fund, so one year itemises above the standard deduction and the next takes the standard deduction anyway.
IRS charitable contributionsUp to 20 per cent of qualified business profit
Sole proprietors, partners and S corporation owners can deduct up to a fifth of qualified business income before tax is worked out. Income limits and service-business rules apply.
IRS qualified business income deduction5 dollars per square foot up to 300 feet, or actual costs
Self-employed only, not employees. Business mileage, a dedicated work room, phone and internet share, and equipment all reduce the profit that carries to Schedule C.
IRS home office deductionA credit comes off the tax itself, and some are refundable, meaning you can be paid even with no tax to pay.
Up to 8,046 with three or more children
A refundable credit for working people on lower pay. Millions who qualify never claim it, and you can claim up to three years back.
IRS earned income tax creditUp to 2,000 per qualifying child, partly refundable
Claimed on Form 1040 with Schedule 8812. There is also a credit of up to 500 for other dependants who do not qualify as children.
IRS child tax credit10, 20 or 50 per cent of the first 2,000 you save
A credit on top of the deduction for lower and middle income savers paying into a 401(k) or IRA. Claimed on Form 8880.
IRS retirement savings contributions creditUp to 2,500 per student, 1,000 of it refundable
The American Opportunity Credit for the first four years of college, or the Lifetime Learning Credit at 20 per cent of the first 10,000 of fees.
IRS education creditsThe same income taxed in a different year, a different account or a different state can produce a very different bill.
48,350 single, 96,700 jointly of long-term gains at zero
Hold an asset more than a year and taxable income below the threshold, and the federal rate on the gain is zero. Selling across two tax years can keep you inside it.
IRS capital gains and losses3,000 a year against ordinary income, the rest carried forward
Sell losing positions to cancel gains, but watch the 30-day wash sale rule if you buy the same security back.
IRS wash salesUp to about 13 per cent of income in state tax
Nine states charge no tax on wages, and others tax retirement income lightly. State tax is often the biggest single lever, and it is a real decision, not a paper one.
State tax by stateAvoids the underpayment penalty and interest
Contractors, landlords and investors pay quarterly on Form 1040-ES. Paying the safe harbour amount stops a penalty being added to a bill you already owe.
IRS estimated taxesEverything on this page is tax planning, which is legal and expected. Hiding income, inventing deductions, or leaving foreign accounts off an FBAR is evasion, which carries penalties and prosecution. Taxmiser will never help with that. If your situation is complex, a licensed CPA or enrolled agent is worth the fee.
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