Do This Now To Pay Less Taxes In 2025

Withholding

Adjusting your paycheck withholding is a simple yet effective way to manage your tax obligations. George Kamel explains that by ensuring the correct amount is withheld, you can avoid both large refunds and unexpected tax bills. He suggests using the IRS calculator to fine-tune your withholdings, aiming for a zero balance where you neither owe nor receive a refund.

The goal is not to get a big refund because that just means you loan the government your money all year long free 0% interest. You deserve better.

--- George Kamel

This proactive approach helps you keep more of your earnings throughout the year, rather than giving the government an interest-free loan 1.

   

Income Deferral

Deferring income to the next tax year can be a strategic move for freelancers and the self-employed. George advises that by delaying income receipt until after January 1st, you can potentially lower your current year's tax bill. This tactic is particularly useful if you expect to remain in the same or a lower tax bracket in the following year.

Defer your income. Now obviously your income is taxed in the year you receive it. So if you're able to defer any income until January 1st or later, you'll save on this year's tax bill.

--- George Kamel

However, it's crucial to assess whether this strategy might push you into a higher tax bracket next year, which could negate the benefits 2.