Income tax season is still several months away. For American taxpayers who file early (because they know they are getting an income tax refund), the IRS usually starts accepting e-filed tax returns the last week of January of each year.
For those who anticipate a tax bill, it usually makes sense to wait to pay until the deadline of April 15. But even thought it’s not quite Thanksgiving yet, there are still some steps you can take to:
- A) Increase your 2027 IRS income tax refund, or …
- B) Decrease the amount you owe when you file your April 2027 income tax return. That would be your IRS Form 1040.
Some actions have to be made before December 31. But there are a couple of options that can lower your tax burden that you can make anytime before April 15. Here are some of the most common 2027 income tax strategies:
Federal Tax Law Changes Taking Effect After December 31, 2026
- Saver’s Match Replaces the Saver’s Credit: Effective for tax years beginning after December 31, 2026, the nonrefundable Saver’s Credit for retirement contributions transitions into the federal Saver’s Match. Eligible low- and moderate-income savers can receive a direct federal matching contribution of up to 50% (up to $1,000 per individual) deposited straight into their retirement plan or IRA, though the traditional Saver’s Credit remains available for contributions to ABLE accounts.
- New Scholarship Granting Organization (SGO) Tax Credit: Created under the One Big Beautiful Bill Act (OBBBA) and taking effect in the 2027 tax year, individuals can claim a federal tax credit of up to $1,700 for qualifying donations to eligible scholarship-granting organizations in states that opt into the program.
- Redesigned Opportunity Zones & New Zone Maps: On January 1, 2027, redesigned Opportunity Zone rules take effect alongside newly redrawn zone maps. Capital gains invested after December 31, 2026, will follow a new rolling deferral framework rather than the expiring first-generation zone rules.
- Expanded Section 162(m) Corporate Deduction Limits: For taxable years beginning after December 31, 2026, public companies face an expanded $1 million deduction cap on executive compensation. Under the American Rescue Plan Act provision taking effect in 2027, the “covered employee” group widens beyond top executives to include a public company’s next five highest-compensated employees.
- Higher 2027 Deductions, Credits, and Contribution Limits: Starting in 2027, the standard deduction rises to $16,600 for single filers and $33,200 for married couples filing jointly. The Child Tax Credit increases by $100 to $2,300 per child (with up to $1,800 refundable), the State and Local Tax (SALT) deduction cap increases by 1% to roughly $40,804, and 401(k) elective deferral limits increase to $25,500.
5 Steps to Lower Your 2026 Taxes or Increase Your Refund Before April 15, 2027
- Make Prior-Year Traditional IRA Contributions: You have until the April 15, 2027 filing deadline to contribute to a Traditional IRA for the 2026 tax year. If you qualify for the deduction, contributing up to the 2026 limit of $7,500 (or $8,600 if age 50 or older) directly lowers your 2026 taxable income.
- Max Out Your 2026 Health Savings Account (HSA): If you were enrolled in an eligible high-deductible health plan in 2026, you can make tax-deductible contributions up until April 15, 2027. The 2026 limits are $4,400 for self-only coverage and $8,750 for family coverage, plus an extra $1,000 catch-up if you are age 55 or older. TaxSlayer.com
- Fund a SEP IRA or Solo 401(k) (For Self-Employed Filers): Freelancers, independent contractors, and small business owners can open and fund a SEP IRA—or make employer profit-sharing contributions to a Solo 401(k)—for the 2026 tax year right up until the April 15, 2027 tax deadline (or later with an extension) to reduce net self-employment income.
- Claim New 2026 Above-the-Line & Non-Itemizer Deductions: When preparing your 2026 return before April 15, 2027, make sure to claim newly expanded tax breaks that apply even if you take the standard deduction—including up to $1,000 ($2,000 for joint filers) for cash donations to charity, the $6,000 senior bonus deduction (if 65 or older), and eligible deductions for qualified tips, overtime pay, and U.S.-assembled auto loan interest. TurboTax
- Review Filing Status and Dependent Credits: Before submitting your return, check whether filing jointly or separately yields a lower combined tax bill (especially if claiming income-sensitive deductions like student loan interest or the expanded SALT cap) and ensure you claim all eligible credits, such as the $2,200 per-child Child Tax Credit, the Child and Dependent Care Credit, or education credits like the American Opportunity Tax Credit.
It’s never too early to think about tax season. The choices you make now can help you save money, or even earn a bigger income tax refund in 2027.
The best advice we can offer is to meet with a CPA or an Enrolled Agent tax professional. That’s the best way to know that you’re following all of the latest tax laws, getting the most benefit from them, and you will rest easy knowing that you used a pro.
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