Tax season is the perfect time to strengthen your role as a strategic advisor. Your clients are asking for guidance on how to get the most out of their return and have put you in the ideal position to help them keep more of their hard-earned money, reduce their taxable income, and realize more savings.
In this post, find:
- Tax law, tax credit, and retirement contribution changes.
- Simple explanations to make your tax season client meetings easier.
- Personal and self-employed business owner tax strategies.
Common tax season client meeting topics
1. Tax law changes
Several new tax regulations and policies came into effect in 2024. Get up to speed on these changes so you are prepared to provide clients with a clear understanding of these changes and how they impact their tax situations.
- Adjustments to tax brackets: The IRS has updated tax brackets to account for inflation. Your total taxable income will be the determining factor in how the tax bracket changes will apply to you. As an example, the top tax rate of 37% applies to single filers earning over $609,350 and married couples filing jointly earning over $731,200.
Tax season 2025 standard deduction changes
| Filing status | Deduction |
|---|---|
| Single; Married, filing separately | $14,600 (up $750) |
| Married, filing jointly | $29,200 (up $1,500) |
| Head of household | $21,900 (up $1,100) |
2. Tax credits
Unlike deductions that only reduce taxable income, tax credits cut tax bills dollar-for-dollar:
- Child Tax Credit: Provides significant relief for families with qualifying children, directly reducing your tax obligation.
- Energy Efficient Home Improvement Credit: Rewards homeowners who invest in qualifying energy-efficient upgrades to their primary residence.
- Residential Clean Energy Credit: Offers substantial tax benefits for installing renewable energy systems like solar panels, wind turbines, or geothermal heat pumps.
- Research & Development Credit: Enables businesses to recoup a portion of their R&D expenses, encouraging innovation and technological advancement.
During your client’s tax review, help them identify all credits they currently qualify for, then highlight opportunities to benefit from additional credits in the coming year.
Tax season 2025 tax credit changes
| Credit | Maximum |
|---|---|
| Earned Income Tax Credit (EITC) | $7,830 (for taxpayers with 3 or more qualifying children) |
| Child Tax Credit | $2,000 per qualifying child |
Note: While the Child Tax Credit remains at $2,000 per qualifying child, income phase-out thresholds have been adjusted, potentially allowing more taxpayers to qualify.
3. Retirement contributions and rollovers
401(k), Individual Retirement Account (IRA) contributions
Contributing to your 401(k) or IRA up to IRS limits provides three key tax benefits:
- Immediate tax reduction: Money you contribute isn’t taxed now, lowering your 2024 tax bill.
- Tax-deferred growth: Your investments grow without being taxed year to year.
- Potentially lower tax rates in retirement: When you withdraw funds during retirement, you’ll likely be in a lower tax bracket, meaning you’ll pay less tax on those dollars than you would today.
By maximizing these contributions, you’re not just saving for retirement—you’re strategically reducing your tax burden both now and in the future.
Health Savings Account (HSA) contributions
An HSA offers unmatched tax advantages:
- Triple tax benefits:
- Contributions reduce your taxable income.
- Growth is tax-free.
- Withdrawals for medical expenses are tax-free.
- Flexible contribution options:
- Payroll deductions are pre-tax.
- Independent contributions are tax-deductible, even if you don’t itemize deductions.
- Employer contributions don’t count as taxable income.
- Long-term advantages:
- Additional catch-up contributions at age 55+.
- After age 65, funds can be used for any purpose (non-medical uses are taxed as regular income, but without penalties).
Think of your HSA as both a healthcare fund and a stealth retirement account with unique tax advantages no other account offers.
Retirement account rollovers
Converting retirement funds to a Roth IRA offers powerful advantages:
- Pay taxes now, enjoy tax freedom later:
- All future growth (interest, dividends, capital gains) is completely tax-free
- Qualified withdrawals are tax-free (both contributions and earnings)
- Greater control and flexibility:
- No required minimum distributions (RMD) during your lifetime
- Freedom to let investments grow as long as you wish
- Strategic planning benefits:
- Pass tax-free assets to heirs
- Create tax diversification, allowing you to draw from traditional or Roth accounts strategically in retirement
Tax season 2025 retirement account changes
Contribution limits for some retirement accounts increased in 2024:
| Account type | 2024 limit | Catch-up contribution limit (Age 50+) |
|---|---|---|
| 401(k), 403(b), most 457 plans, Thrift Savings Plan | $23,000 (up 500) | $7,500 |
| IRA | $7,000 (up 500) | $1,000 |
| SEP IRA | $69,000 | N/a |
4. Reporting thresholds
- 1099-K: The threshold for receiving a 1099-K form has been lowered to $5,000 in gross payments, regardless of the number of transactions. This could impact taxpayers who use third-party payment platforms (PayPal, Venmo).
- Long-term capital gains taxes: Thresholds for long-term capital gains taxes have been adjusted, which may affect the tax rate applied to your investment income. These updates are designed to allow taxpayers to maximize deductions and credits.
5. W-2 withholding
Life changes and additional income sources may require withholding adjustments. Review your W-2 withholding if you experienced a major life event (marriage, divorce, birth of a child) or have new income sources to prevent unexpected tax bills or excessive refunds.
6. Self-employment tax obligations
Review your estimated self-employment tax payments (including Medicare and Social Security) to ensure compliance with requirements and avoid potential underpayment penalties.
7. Tax compliance review
A thorough review of prior tax filings is essential for maintaining compliance. Check that all required returns are filed accurately to prevent penalties or other tax-related complications.
8. Business record keeping
Organized financial records are crucial for accurate tax filing and business insights. Implement consistent record-keeping practices throughout the year to simplify tax preparation, get clearer visibility into your financial position (and keep everything secure.)
9. Additional financial services
Do your clients know about everything your firm offers? Make sure to include a note about your additional services, such as: “Tax preparation is just one aspect of financial management. We can help identify other areas where you might benefit from professional guidance, including tax planning, business accounting, and other financial services.”
Self-employed business owner tax strategies
Many business owners need coaching on the fundamentals of tax deductions. Share the below resource with your entrepreneurial clients—new and seasoned alike—to help explain how each deduction works:
| Deduction | Explanation | IRS resource |
|---|---|---|
| Home office deduction | Claim a portion of your housing costs when you have a space exclusively used for business. This covers rent, mortgage interest, utilities, and property taxes, using either the simplified method or regular calculation based on your specific situation. | Home office deduction |
| Office supplies and equipment | Deduct the full cost of business necessities from basic supplies to computers, printers, software, and specialized tools required for your work. | Small business tax guide |
| Vehicle expenses | Reduce your tax bill by deducting business-related auto expenses including gas, maintenance, insurance, and depreciation. Maintain detailed mileage logs to support these deductions. | Business use of car |
| Advertising and marketing | Write off all business promotion costs including website development, digital advertising, business cards, and social media marketing campaigns. | Guide to business expense resources |
| Health insurance premiums | Deduct 100% of health insurance costs for yourself, your spouse, and dependents when you’re self-employed. | Self-employed health insurance deduction |
| Retirement contributions | Lower your taxable income significantly by maximizing contributions to SEP IRAs, Solo 401(k)s, or SIMPLE IRAs designed for business owners. | Retirement plans for self-employed people |
| Education and training | Deduct costs for professional development that maintains or enhances your business skills, including courses, workshops, and certifications. | Work-related education expenses |
| Travel and accommodation | Claim deductions for business travel expenses including transportation, hotels, meals, and related costs when traveling for business purposes. | Business travel expenses |
Turn your next tax season client meeting into an opportunity
Now that tax season is here, your role as a trusted advisor becomes even more vital.
Whether your client needs guidance on qualifying business expenses or is preparing to send their child to college—your personalized support, backed by efficient tax preparation tools, will undoubtedly help them navigate this tax season confidently while positioning you as the trusted advisor by their side.
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