What to Do After Filing Your Taxes: 5 Things You Should Consider
Tax season might be over for the majority of taxpayers (except for those with extensions) and maybe you’ve received your refund, and you're ready to forget about taxes until next year. But hold on! After filing is actually the perfect time to make some smart moves with your investments that could save you money and help you build wealth.
Think of your completed tax return as a report card for your financial decisions. It shows you exactly what worked, what didn't, and where you can do better. Here are five simple steps every investor should take right after filing taxes.
Play Detective with Your Tax Return
Before you file away your tax paperwork, spend some time looking through it like a detective. You're searching for clues about your money.
Look at how much you paid in taxes on your investments. Did you get hit with a tax from selling stocks? Did you earn a lot of taxable interest or dividends? Compare to the year before – what changed?
Maybe you forgot to put money in your retirement account, or you missed out on tax breaks for education expenses. Write down what you discover. This isn't about beating yourself up over mistakes; it's about learning from them so you can make better choices going forward.
Plan Your Savings Like a Pro
Now that you know where you stand, it's time to plan your savings for this year. The government gives you several ways to save money that also might reduce your taxes – but only if you use them.
Here’s a few options for you in 2025 - check with your financial advisor and/or tax professional to see if you can put these to work.
Put up to $23,500 in your workplace retirement plan (like a 401k)
Save up to $7,000 in an Individual Retirement Account (IRA)
If a Health Savings Account is available to you, you can contribute $4,300 for yourself or $8,550 for your family
Consider a 529 college savings plan if you have kids (allows tax-free gains on your contributions)
Clean Up Your Investment Portfolio
Spring cleaning isn't just for your house – your investment portfolio needs it too. This is where you can get creative and actually make money from your mistakes.
If you have investments that lost money, you can sell them and use those losses to cancel out gains from your winners. This is called "tax-loss harvesting," but think of it as turning your losses into tax savings.
You should also think about where you keep different types of investments. Put investments that generate a lot of taxable income (like bonds) in your retirement accounts where they won't be taxed every year. Keep investments that don't generate much annual income (like growth stocks) in your regular accounts.
If you're in a higher tax bracket, municipal bonds might be something to explore. The interest you earn is often tax-free, which means more money stays in your pocket.
Get Organized for Next Year
Nobody likes scrambling to find documents at tax time. Set yourself up for success by getting organized now.
Create folders on your computer or phone for different types of tax documents. When you get statements from your bank or investment accounts, put them in the right folder immediately. If you contribute to a non-profit, drop that confirmation email into that same folder as well.
Keep track of any money you spend on investments – fees, subscription services for research, even the cost of a safe deposit box. These might be tax-deductible.
The rule of thumb is to keep investment records for at least three years after you file your taxes. But if you still own an investment, keep the records until you sell it. You'll need them to calculate your profit or loss.
Don't Set It and Forget It
The biggest mistake people make is thinking about taxes only once a year. Smart investors check in on their strategy every few months.
Set a reminder to review your investments four times a year. Ask yourself: Am I on track to max out my retirement savings? Do I have any losing investments I should sell before year-end? Are there new opportunities I should consider?
Stay informed about changes in tax laws – they happen more often than you might think. What works this year might not work next year.
Consider working with a financial advisor if your situation is getting complicated. They can help you navigate the rules and find opportunities you might miss on your own. If you don’t have a tax plan in place, feel free to reach out to us - we’ll even provide you with a free tax analysis.
The Bottom Line
Filing your taxes isn't the finish line – it's actually the starting gun for better financial planning. By taking these steps now, you're setting yourself up for a more successful financial year and potentially saving thousands in taxes.
The key is to think of tax planning as a year-round activity, not a once-a-year panic. Small, consistent actions throughout the year add up to big savings over time. Your future self will thank you for taking action now instead of waiting until next tax season.
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Everyone’s tax situation is different. Make sure to consult with your tax professional before making changes to your individual situation.
