If you earn a paycheck, your options look different from a business owner's, but they are real. This guide from AE Tax Advisors covers the moves that apply to most W-2 earners. It is general education, not advice for your situation, and limits change each year, so confirm current figures on IRS.gov.
A big refund means you lent the government money all year. A big bill means too little was withheld. Use the IRS Tax Withholding Estimator, then update your Form W-4 with your employer so withholding matches your real liability.
Traditional 401(k) and 403(b) contributions come out before income tax, which lowers your taxable wages. For 2026 the employee deferral limit is $24,500, with higher catch-up amounts for age 50 and over. If your employer matches, contribute at least enough to get the full match.
An HSA paired with a high-deductible health plan gives a deduction going in, tax-free growth, and tax-free withdrawals for qualified medical costs. For 2026 the limits are $4,400 for self-only coverage and $8,750 for family coverage, plus a catch-up for age 55 and over.
Health care and dependent care flexible spending accounts
Commuter and transit benefits
Employer-paid education assistance, within limits
Most of these must be elected during open enrollment, so check your window.
Most taxpayers take the standard deduction. Itemizing can win if mortgage interest, state and local taxes (subject to the cap), charitable gifts and medical costs add up to more. Bunching charitable gifts into one year can push you over the line.
Credits reduce tax dollar for dollar. Common ones for employees include the child tax credit, child and dependent care credit, education credits, the saver's credit for lower and moderate incomes, and the earned income credit.
Recent law added temporary deductions for qualified tips and qualified overtime pay, with income limits and caps. If this applies to you, make sure the amounts are tracked and reported correctly.
Unreimbursed job expenses, such as a home office or supplies you buy for work, are generally not deductible for W-2 employees. Ask your employer about an accountable reimbursement plan instead.
If you also earn self-employment income, real business expenses can be deducted against it, and additional retirement plan options may open up. Keep the activity separate and well documented.
If you missed a credit or deduction, you can generally amend a return within 3 years of filing or 2 years of paying the tax, whichever is later.
The best time to act is before December 31, not in April. AE Tax Advisors publishes more guides on Medium.
General education only. Not tax, legal or accounting advice. Consult a qualified tax professional about your facts.