Although it’s an annual event, and for most of us it’s not our favorite time of the year–ready or not, April 15, 2026 will soon be here. While there is no fun way to discuss taxes perhaps this year your refund may be larger, or you may owe less in taxes. That’s fun, right?
Here are a few areas of tax opportunities for you in your 2025 filing.
Taking On The Task
There is no point in waiting until the last minute to file because if you owe and do not have the money to pay, will be facing potentially two types of penalties. There is the failure to file penalty and the failure to pay penalty. If you have prepared your return and you will owe and do not have the money to pay, file at the deadline and avoid the penalty of failing to file on time. You will not avoid interest on failing to pay, but you will at least avoid potentially up to 25% in interest. The Internal Revenue Service current rate of interest charged and compounded on tax liabilities is 7%. I will provide a solution though at the end.
Vehicle Deduction
If you purchased or leased a vehicle in 2025, you may be eligible to deduct up to $10,000 in loan interest on your 2025 tax return. There are some required qualifications such as the vehicle’s final assembly must have been in the United states of America. This may exclude some foreign vehicles. One way to determine if you qualify for the deduction is to search the National Highway Traffic Safety Administration website (nhtsa.gov/vin-decoder) using your your vehicle’s identification number (VIN). This website should provide enough information to determine your eligibility. If you did not purchase a vehicle in the year 2025, this information is valuable in the event you plan to purchase a vehicle in the next three years. This deduction expires at the end of tax year 2028 and therefore in order to benefit, think strategically when it comes to purchasing your next vehicle. Know that for married individuals who are filing jointly, if your Modified Adjusted Gross Income exceeds $200,000 this deduction is subject to a “phase out.” In other words, you will receive less of a deduction the more your income exceeds $200,000.
Digital Currency
To all my digital currency friends, the IRS is taking these activities very seriously. In 2025 Bitcoin and other digital currency investments earned significant profits. If you invested in digital currency and cashed in on your profits, remember that these investments follow the same rules as trading in stocks and bonds. It means that they are subject to ordinary gains taxed at the highest tax rate or subject to capital gain rates taxed at the lowest tax rates. Here is a point worth noting: you will have to pay taxes on your digital currency gain even if you used it to purchase another item instead of cashing it in. Let’s just say when it comes to the IRS, it’s simply a case of, you can run, but you can’t hide.
State Tax Relief
In 2025, your 2025 your state and Local Tax ( SALT) allowance on the federal return has been increased from $10,000 to $40,000. With property taxes on the rise, this raise will provide much needed relief to many taxpayers who own a home. This change alone can result in taxpayers obtaining refunds instead of owing the IRS. This amount will increase by 1% each year through tax year 2029 and covers not only real property taxes but also property taxes on vehicles and boats. You are also allowed to deduct either state and local sales tax or state and local income taxes but not both.
It is probably now worth the effort to retain your property tax, mortgage interest, medical bills and charitable contribution which would determine whether you take the standard deduction or itemize. Take a look and see whether this results in tax relief for you. .
Tax Moves
The year 2025 may have ended but you still have time to contribute into an Individual Retirement Account (IRA). Contributions made to your IRA will reduce your Adjusted Gross Income (AGI) to which many of your tax benefits are attached. Any opportunity to reduce your AGI is a win! For tax year 2025 you can contribute up to $7,000 or up to $8,000 if you are more than 50 years old. You must take action before April 15, 2026 for your deduction to be applied on your 2025 tax return.
Another tax move that can provide even more benefits is your Health Saving Account (HSA). With this account your money grows tax deferred, withdrawals used to pay qualified medical expenses are tax free and your contributions are tax deductible. Execute before April 15, 2026 for receive your 2025 tax benefit.
Now back to the point about owing and paying 7% interest to the IRS. If you can borrow at a lower interest rate, then pay off the IRS and pay the lower rate from your loan. If you are able to, obtain a new credit card which provides 18 months no interest and pay off your tax debt using your new card.
WHAT’S UP!
Today’s What’s Up is about saving money on your next trip. Always try to stay in a hotel that offers free breakfast. You can then have something light for lunch and then pay for dinner in the evening thereby spending money on one meal per day. For international travel use a credit card with rewards credit and no transaction fees. Always have your transactions processed in the local currency and not United States Currency. Finally, if you can rent your vehicle from an off airport site, the cost will be cheaper. And that’s what’s up!
Ruthven R. Phillip, Esq., is a tax attorney, Stewardship and Philanthropy Ministry Assistant, and CEO of Give2Getrich, LLC. Give2Get Rich, LLC 2026 All Rights Reserved. Any distribution or reproduction of part or all of the contents in any form is prohibited.
