Tax-Saving Moves High-Income Earners Can Still Make Before Filing

Tax Saving Moves You Can Still Make

If you’re a high-income earner, your return isn’t “locked” just because it’s the new year. You still have time to trim your bill, fix reporting mistakes, and set yourself up for a better long-term plan.

Below are practical moves worth reviewing that could have the most impactful tax savings in the final weeks.

1. Maximize retirement contributions you can still make 

Several retirement contributions remain open until the prior year's filing deadline. These have the potential to be last-minute wins.

• Traditional IRA: You can often contribute up to the filing deadline. Whether the contribution is deductible depends on your income and whether you or your spouse were covered by a workplace plan. Even if it is not deductible, documenting the basis can help later.

• Spousal IRA: If one spouse has little or no earned income, a spousal IRA may allow a contribution based on the working spouse’s earnings.

• SEP IRA (self-employed): You can usually open and fund a SEP IRA up to your filing deadline, including extensions. For high earners with 1099 income, this can create a significant deduction.

• Solo 401(k): If your plan was established on time last year, you may still be able to make employer profit-sharing contributions before filing. Confirm plan rules and deadlines with your provider and verify how those contributions interact with any W-2 plan.

2. Review HSA eligibility and funding 

If you had a qualifying high-deductible health plan last year, you can usually still fund an HSA for that year.

Contributions are deductible, growth is tax-deferred, and qualified withdrawals are tax-free.

Double-check month-by-month eligibility if your coverage changed so you avoid excess contributions.

3. Consider a clean backdoor Roth (if you qualify)

High earners who are over the income limit for a direct Roth IRA can sometimes use a backdoor Roth.

The general approach is to make a non-deductible Traditional IRA contribution and then convert it to a Roth IRA.

The pro-rata rule applies if you hold any pre-tax IRA money (Traditional, SEP, or SIMPLE). In that case, part of the conversion will be taxable.

Account structure, timing, and documentation are critical, so review your total IRA balances first.

4. Check state-specific 529 contribution deadlines

Some states allow a deduction or credit for 529 contributions made up to the prior year's filing deadline.

If your state offers this, a contribution now can reduce your state tax bill while funding education goals.

State rules vary widely, so verify contribution timing, eligible accounts, and any per-taxpayer or per-beneficiary limits.

5. Confirm capital loss carryforwards and basis reporting

You can’t harvest new losses for last year now, but you can make sure past losses are applied correctly, and that cost basis is accurate. This is where people overpay without realizing it.

• Review 1099-Bs and Schedule D worksheets to confirm gains/losses are netted correctly, and loss carryforwards show up.

• Check basis adjustments (especially if you’ve transferred accounts or have corporate actions).

Accuracy here prevents paying tax on phantom gains.

6. Double-check equity compensation reporting

Equity compensation frequently creates filing errors for high-income earners, and those errors are often costly.

• RSUs: Make sure the cost basis reflects income already taxed through payroll at vesting. If the basis is too low on your 1099-B, you can appear to have more taxable gains than you actually do.

• ISOs: Review for potential AMT exposure and confirm Form 3921 details. If you sold during the year, confirm whether the sale was qualifying or disqualifying and that the tax treatment matches.

• ESPP: Verify the purchase discount, holding period rules, and basis adjustments. Reporting mistakes here can turn a favorable benefit into unnecessary tax.

  
  

7. Revisit itemized deductions versus the standard deduction

Don’t assume last year’s answer is this year’s answer. Run it both ways if you’re close. Make sure charitable gifts (especially appreciated securities) are fully documented, SALT payments are captured up to the cap, and mortgage interest and large medical bills are recorded correctly.

Small documentation gaps can swing the result, so a careful review can pay off.

8. Tighten records for business, consulting, or side income 

If you have 1099 or business income, accurate records reduce tax and audit risk.

Include all legitimate deductions such as software, equipment, professional dues, continuing education, mileage, and home office if eligible.

Consider whether a SEP IRA or Solo 401(k) employer contribution can still be made for that income and coordinate it with your W-2 deferrals if applicable.

Keep business and personal expenses separate to make support and review easier.

9. Evaluate your filing strategy and consider an extension when helpful 

An extension gives you more time to file an accurate return, but it does not give you more time to pay.

Extending can be wise if you are waiting on K-1s, corrected 1099s, or equity compensation details, or if you need time to confirm basis and carryforwards.

Pay your best estimate of tax by the original deadline to avoid penalties and interest. Then use the extra time to file a clean, well-documented return.

How to prioritize your next few weeks

Start with the largest potential impact.

Review retirement contributions, HSA eligibility, and equity compensation reporting. Confirm loss carryforwards and deductions. Run projections to determine if the standard deduction or itemizing is best.

Then evaluate whether filing on time or extending creates the cleanest result.

Common pitfalls to avoid

• Waiting until the final days can cause processing delays, bank transfer issues, or missed documentation.

• Overlooking basis adjustments on 1099-B forms leads to overstated gains, especially with RSUs and ESPP shares.

• Ignoring state-specific benefits or deadlines for 529 plans can leave easy savings unused.

• Mixing personal and business spending creates support problems if your return is questioned later.

A quick pre-filing checklist

• Retirement contributions: Have you maximized what is still open, including SEP IRA, Solo 401(k) employer contributions, Traditional IRA, and Spousal IRA?

• HSA: Were you eligible for last year, and have you funded the allowable amount for those months?

• Backdoor Roth: Do you understand how the pro-rata rule interacts with your existing IRA balances?

• 529 plan: Does your state allow prior-year contributions before filing, and have you used the benefit if available?

• Brokerage reporting: Are gains, losses, and carryforwards reflected correctly, and is cost basis accurate?

• Equity compensation: Do RSU, ISO, NSO, and ESPP entries match plan records, payroll reports, and forms?

• Deductions: Have you compared itemized deductions to the standard deduction with full documentation?

• Filing strategy: Are you prepared to file cleanly now, or would an extension plus an accurate payment yield a better result?

Final thoughts

You are not out of time, but you are in a limited window. The best outcomes come from a calm, ordered review of the options still available before filing.

For most high-income earners, that means maximizing eligible contributions, getting HSA and backdoor Roth steps right, confirming equity compensation reporting, applying loss carryforwards, and choosing the best filing approach.

A short, organized review now may help you lower your tax bill and keep problems from snowballing into next year.

You still have time to get this right. Use it well.

 - Steve Balch, CFP®

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