Key Takeaways
- You can still contribute to IRAs and HSAs until April 15. Max out your traditional IRA ($7,000, or $8,000 if 50+) or HSA ($4,300 individual, $8,550 family) for the 2025 tax year to reduce your taxable income. A $7,000 traditional IRA contribution in the 32% bracket saves you about $2,240 in federal taxes.
- RSU withholding is often too low, leading to surprise tax bills. The standard 22% federal withholding on RSUs isn’t enough if you’re in a higher tax bracket. Adjust your W-4 or set up quarterly estimated payments now to avoid owing $30,000+ next April.
- Bunch charitable contributions using a donor-advised fund (DAF). Instead of donating small amounts yearly, contribute multiple years’ worth to a DAF in one year to exceed the standard deduction threshold ($15,000 single, $30,000 married). You can donate appreciated company stock to avoid capital gains tax while getting the full deduction.
- The safe harbor rule protects you from underpayment penalties. Pay at least 90% of this year’s tax liability or 110% of last year’s (if AGI over $150,000) through withholding or estimated payments to avoid IRS penalties.
- Filing a tax extension is automatic and legitimate. Form 4868 gives you until October 15 to file, no justification needed. Just remember: an extension to file is NOT an extension to pay. You still must estimate and pay what you owe by April 15.
It’s early April, and if you’re like most people, tax season is stressing you out.
Maybe you’ve already filed, and you’re bracing for a big tax bill. Maybe you’re still gathering documents and dreading what your CPA is going to tell you. Or maybe you got a massive RSU vest last year, and you’re pretty sure Uncle Sam is about to take a huge bite.
Here’s the good news. Even though we’re close to the April 15 deadline, there are still some smart tax moves you can make. Not all tax planning happens in December. Some of the most effective strategies can be executed right up until you file your return (or even a bit after, in some cases).
So let’s talk about what you can still do, even if the clock is ticking.
Max Out Your IRA Contributions (You Have Until April 15)
This is the big one that people forget. You can make IRA contributions for the 2025 tax year all the way up until the tax filing deadline, which is April 15, 2026.
If you haven’t maxed out your traditional IRA or Roth IRA yet, you still have time.
For 2025, the contribution limit is $7,000 ($8,000 if you’re 50 or older). If you contribute to a traditional IRA and you meet the income requirements, that contribution is tax-deductible, which directly reduces your 2025 taxable income.
Let’s say you’re in the 32% tax bracket and you contribute $7,000 to a traditional IRA. That saves you about $2,240 in federal taxes. Not bad for a contribution you can make literally the day before the filing deadline.
Now, if your income is too high to deduct traditional IRA contributions (which is common for tech professionals with high comp packages), you can still contribute to a Roth IRA or make a non-deductible traditional IRA contribution and then convert it to a Roth (the “backdoor Roth” strategy).
The backdoor Roth doesn’t save you taxes this year, but it’s still a smart move for building tax-free retirement savings.
Health Savings Account (HSA) Contributions Count Too
If you have a high-deductible health plan, you might be eligible to contribute to an HSA. And just like IRAs, you can make HSA contributions for the prior tax year up until the filing deadline.
For 2025, you can contribute up to $4,300 for individual coverage or $8,550 for family coverage (add $1,000 if you’re 55 or older).
HSA contributions are tax-deductible, they grow tax-free, and if you use them for qualified medical expenses, the withdrawals are tax-free too. It’s basically the best tax-advantaged account that exists.
If you haven’t maxed out your HSA, doing so before April 15 can lower your 2025 tax bill while building a medical expense fund for the future.
Review Your RSU Tax Withholding (and Adjust for Next Year)
Okay, this one won’t help your 2025 taxes, but it’s worth addressing now while you’re thinking about it.
When your RSUs vest, your employer withholds taxes at a supplemental wage rate, which is often 22% federally (or 37% if your total supplemental wages exceed $1 million for the year).
Here’s the problem. If you’re in a higher tax bracket than 22%, that withholding isn’t enough. You’ll owe more at tax time. And if you had multiple large vesting events in 2025, you might be looking at a substantial tax bill right now.
While you can’t fix 2025 withholding at this point, you can adjust your W-4 or set up estimated tax payments to avoid the same surprise in 2026.
Talk to your payroll team about increasing your withholding percentage on future RSU vests. Or set up quarterly estimated tax payments if you prefer to manage it yourself.
The goal is to avoid that gut-punch feeling next April when you realize you owe $30,000 because your withholding was too low.
Harvest Capital Losses (Even in April)
Tax-loss harvesting is usually something you do in December. But if you haven’t filed your return yet and you’re looking for ways to reduce your tax bill, you can still sell losing positions to offset capital gains from 2025.
Let’s say you sold some company stock last year and realized a $20,000 capital gain. If you have other investments sitting at a loss, you can sell them before you file your return and use those losses to offset the gains.
You can offset up to $3,000 of ordinary income with capital losses, and any excess losses carry forward to future years.
Now, be careful with this strategy. You don’t want to sell an investment you actually want to hold just to save a few bucks on taxes. But if you’ve been meaning to rebalance anyway and you have some losing positions, this might be the nudge you need.
Bunch Your Charitable Contributions (Donor-Advised Funds)
If you’re charitably inclined, one of the smartest tax moves you can make is bunching multiple years of donations into a single year to exceed the standard deduction threshold.
The standard deduction for 2025 is $15,000 for single filers and $30,000 for married filing jointly. Unless your itemized deductions (including charitable contributions, mortgage interest, and state taxes) exceed that amount, you’re taking the standard deduction anyway.
But here’s a strategy. Instead of donating $5,000 every year, you could contribute $15,000 or $20,000 to a donor-advised fund (DAF) this year, itemize your deductions, and then take the standard deduction for the next few years.
You get the tax deduction now, and you can distribute the money from your DAF to charities over time.
And if you have appreciated stock (like company shares that have grown in value), you can donate those shares directly to the DAF, avoid paying capital gains tax, and still get the full fair-market-value deduction.
This is especially powerful for tech professionals with concentrated stock positions who want to reduce their holdings while supporting causes they care about.
Consider a Qualified Charitable Distribution (QCD) If You’re Over 70½
If you’re over 70½ and you have traditional IRA or 401(k) assets, you can make a qualified charitable distribution (QCD) directly from your retirement account to a charity.
QCDs count toward your required minimum distribution (if you’re subject to RMDs), but they don’t increase your taxable income. Essentially, you’re giving money to charity without having to claim it as income first.
You can contribute up to $105,000 per year through a QCD (as of 2025). It’s a powerful strategy for retirees who want to support charitable causes while keeping their taxable income low.
Even if you’re not in retirement yet, it’s worth knowing about this strategy for future planning.
Check If You Qualify for the Saver’s Credit
Most tech professionals earn too much to qualify for the Saver’s Credit, but if you had a lower-income year in 2025 (maybe you took a sabbatical, switched jobs mid-year, or had other unusual circumstances), it’s worth checking.
The Saver’s Credit gives you a tax credit of up to $1,000 (or $2,000 if married filing jointly) for contributing to a retirement account.
For 2025, you qualify if your adjusted gross income is under $38,250 (single), $57,375 (head of household), or $76,500 (married filing jointly).
If you’re anywhere close to those thresholds and you made IRA or 401(k) contributions, make sure your tax preparer is claiming this credit. It’s free money.
File for an Extension If You Need More Time
Here’s something people don’t always realize. Filing a tax extension is not a sign of failure. It’s a legitimate planning tool.
If you’re still gathering documents, waiting on K-1s from investment partnerships, or you need more time to strategize, you can file Form 4868 and get an automatic six-month extension to October 15.
The key word there is “automatic.” You don’t have to justify why you need more time. You just file the form and you get the extension.
Now, here’s the catch. An extension to file is not an extension to pay. If you owe taxes, you still need to estimate what you owe and pay it by April 15 to avoid penalties and interest.
But if you need more time to optimize your return, gather documentation, or consult with a tax professional, filing an extension can give you breathing room.
What About Estimated Taxes for 2026?
Let’s shift gears and talk about the current year for a second.
If your 2025 tax bill is making you sweat, there’s a good chance you’re going to owe again in 2026 unless you adjust your withholding or start making estimated tax payments.
The IRS requires you to pay taxes throughout the year, either through withholding or quarterly estimated payments. If you don’t pay enough, you can get hit with underpayment penalties.
Here’s the safe harbor rule. As long as you pay at least 90% of your current year’s tax liability or 100% of last year’s tax liability (110% if your adjusted gross income is over $150,000), you avoid penalties.
So if you owed $40,000 in 2025 taxes and you expect a similar income in 2026, you should aim to pay at least $44,000 (110% of last year’s liability) through withholding or estimated payments to stay safe.
The first estimated tax payment for 2026 is due April 15, so if you’re going to start making quarterly payments, now’s the time.
Know When to Bring in a Pro
Look, I’m all for DIY tax prep if your situation is straightforward. But if you’re dealing with RSUs, ISOs, ESPP shares, AMT calculations, or complex investment activity, it’s probably worth paying for professional help.
A good CPA or tax advisor who understands equity compensation can often save you more in taxes than their fee costs. They know the strategies, the deductions, the credits, and the pitfalls that most people miss.
And if you’re using TurboTax or another software platform, be really careful with equity compensation. Those programs don’t always handle RSUs, stock options, and AMT correctly. I’ve seen people overpay (or underpay) by thousands of dollars because the software didn’t catch the nuances.
Your Last-Minute Tax Action Plan
Okay, let’s recap. Here’s what you can still do before the April 15 deadline.
This week: Max out your IRA and HSA contributions for 2025 if you haven’t already. This is the easiest, highest-impact move you can make.
Before you file: Review your withholding for 2026 and adjust if needed. Set up quarterly estimated payments if your withholding isn’t enough to cover your expected tax liability.
If you have time: Explore tax-loss harvesting, charitable giving through a donor-advised fund, or bunching deductions to maximize your itemized deductions.
If you need more time: File an extension. Just remember to estimate and pay what you owe by April 15.
And if this all feels overwhelming, you’re not alone. Tax planning for tech professionals with equity compensation is genuinely complicated. There are a lot of moving pieces, and the stakes are high.
Let’s Make Sure You’re Not Leaving Money on the Table
If you’re tired of being surprised by big tax bills every April, let’s talk about building a proactive tax strategy that actually works with your equity compensation.
We can review your RSU vesting schedule, optimize your withholding, explore tax-loss harvesting opportunities, and make sure you’re taking advantage of every deduction and credit available to you.
Schedule a consultation at wovencapital.net/schedule and let’s build a plan that keeps more of your money in your pocket and less in Uncle Sam’s.