March usually feels like the home stretch of tax season. Even though we’re already well into 2026, most of our financial focus right now is actually on looking back at 2025. Think of this month as a "bridge" period because it’s your last real chance to use specific rules and last-minute contributions to lower your tax bill before the April 15 deadline hits.
Get the Most From Your Retirement Contributions
One of the most effective ways to move the needle on your 2025 return right now is by topping off your retirement accounts. You’ve got until April 15, 2026, to make these contributions and have them count toward last year. For the 2025 tax year, you can contribute up to $7,000 to an IRA, and if you were age 50 or older by the end of 2025, you can add an extra $1,000 as a "catch-up".
If you’re using a high-deductible health plan, don’t overlook your HSA. These contributions also have an April 15 cutoff and provide a powerful "above-the-line" deduction. This reduces your taxable income even if you don't itemize. When you’re making these moves this month, be sure to specifically designate them for the 2025 tax year with your financial institution to ensure they’re recorded correctly.
What’s New Under the "One Big Beautiful Bill Act"
We're now seeing the first real-world impacts of the One Big Beautiful Bill Act, which was signed into law in July 2025. Several of its provisions are active for the returns you’re filing this month and could significantly impact your bottom line.
For instance, taxpayers age 65 and older may now qualify for a specific Senior Deduction of up to $6,000 per person. If you purchased a new, personal-use vehicle in 2025 that was assembled in the U.S., you might also be able to deduct up to $10,000 in loan interest. Additionally, certain workers can now benefit from new rules that treat a portion of their 2025 tip and overtime income as tax-free. These aren't just minor adjustments but rather strategic shifts in how your income is treated, and missing them means leaving your own money on the table.
Navigating the 2026 Filing Process
To ensure your filing goes smoothly and you avoid 2026 headaches, there are a few procedural changes to keep on your radar. First, the IRS is phasing out paper refund checks entirely under a new executive order. You must provide your routing and account numbers to receive your refund via direct deposit.
Accuracy is also critical with newer assets. Regardless of whether you get a specific form, you’re required to answer the digital asset question on your Form 1040 regarding any crypto transactions from 2025. Finally, don't rush to file too early if you’re still waiting on brokerage forms. Many 1099s don’t arrive until late February, and filing without them in early March usually leads to the extra cost and stress of an amended return later.
Make Tax-Efficiency a Year-Round Habit
Once the April 15 deadline passes, don't just file your paperwork away and forget about it. The most successful investors treat tax planning as a year-round strategy rather than a once-a-year scramble. A key move you can make starting right now is reviewing your asset location and tax-loss harvesting opportunities.
Tax-loss harvesting involves selling underperforming investments in your taxable accounts to "harvest" a loss, which you can then use to offset capital gains or even up to $3,000 of your ordinary income. This is a powerful way to turn market volatility into a tax benefit. Additionally, make sure you’re placing high-tax assets—like corporate bonds—inside tax-advantaged accounts while keeping tax-efficient assets—like municipal bonds—in your taxable accounts.
Taking these steps now ensures your after-tax wealth continues to compound throughout 2026.
Setting the Stage for 2027
Once your 2025 return is finally out the door, it’s the perfect time to pivot to 2026 planning.
Waiting until next year to think about your taxes is a reactive approach that limits your options.
With tax brackets and standard deductions shifting again for the 2026 year, a proactive check-in now can help you avoid surprises when we do this all again next March.
Use this momentum to review your current withholding and your 2026 savings goals. Whether you’re looking to maximize your employer match, adjust your investment mix, or simply get more organized, being intentional now ensures your financial decisions actually match your long-term goals. True financial resilience isn't just about surviving tax season. It’s about building a foundation that absorbs surprises with less stress and more confidence.
