I Asked ChatGPT for Specific Steps for Lowering My Tax Bill Before I File — Here’s What It Said

Tax play is present and I’m looking astatine my numbers reasoning determination has to beryllium thing I tin bash to little what I owe. The twelvemonth already ended, truthful astir taxation moves are disconnected the table. But I wanted to cognize if determination were immoderate last-minute strategies I could inactive usage earlier filing.

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I asked ChatGPT for circumstantial steps to little my taxation measure adjacent though 2025 is over. Here’s what it told me.

The archetypal happening ChatGPT brought up was status accounts. Even though Dec. 31 has passed, you person until the taxation filing deadline to lend to definite accounts and assertion the deduction for past year.

Traditional IRAs fto you lend up until April 15 for the erstwhile taxation year. The publication lowers your taxable income dollar for dollar, which means if you enactment successful $6,500, your taxable income drops by $6,500.

If you’re self-employed, ChatGPT said SEP IRAs and Solo 401(k) plans person adjacent bigger deduction potential. These accounts fto you lend mode much than a accepted IRA, sometimes tens of thousands of dollars depending connected your income.

The deadline for these contributions is usually April 15, though it tin beryllium extended successful immoderate cases. ChatGPT called this 1 of the highest interaction moves you tin marque if you haven’t maxed retired yet.

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Health savings accounts are different relationship you tin lend to aft the twelvemonth ends. If you had a high-deductible wellness program successful 2025, you tin inactive money your HSA up to the filing deadline and assertion the deduction.

ChatGPT said HSA contributions are tax-deductible, the wealth grows tax-free and withdrawals for aesculapian expenses are tax-free. It called this “one of the astir tax-efficient tools successful existence,” which sounds similar selling talk but isn’t wrong.

If you’re eligible for an HSA and didn’t max it out, this is an casual mode to chopped your taxation bill.

If you sold investments astatine a nonaccomplishment successful 2025, you tin usage those losses to offset superior gains. ChatGPT explained that if your losses are bigger than your gains, you tin usage up to $3,000 of the excess to offset mean income. Anything near implicit carries guardant to aboriginal years.

This 1 lone works if you really sold investments astatine a loss. You can’t spell backmost and merchantability thing present to assertion a nonaccomplishment for 2025. But if you already took losses during the year, marque definite you’re utilizing them to trim your taxation bill.