Core Insights - The upcoming tax season presents opportunities for individuals to optimize their tax refunds and reduce liabilities through strategic actions in Q1, particularly under the Big Beautiful Bill Act, which could increase average refunds by up to $1,000 and reduce individual income taxes by $129 billion in 2025 [1]. Tax Strategies - Prior-Year IRA Contributions: Individuals can contribute up to $7,000 for the 2025 tax year if under 50, and up to $8,000 if 50 or older, until the tax filing deadline [3][6]. - Retirement Savings Impact: Maxing out IRA contributions at the current limit of $7,000 over 20 years with a 6% return could yield $296,348, compared to $169,341 if contributing the average of $4,000 [4]. - Health Savings Account (HSA) Contributions: Contributions to HSAs are tax-deductible and can be made for the previous tax year, with limits of $4,300 for self-only coverage and $8,550 for family coverage for 2025 filings, plus a $1,000 catch-up contribution for those aged 55 and older [5][6]. - Self-Employment Deductions: Self-employed individuals can utilize various deductions to lower tax liabilities, including home office expenses, business-related software, phone and internet costs, mileage, and professional services [7].