March 2026 generally decided to reverse its usual in like a lion, out like a lamb script. Most of the country enjoyed pleasant weather as the third month of the year rolled in over the weekend.
But don’t let the current calm distract you. March also is the perfect time to take some tax-saving action. That applies to both your 2025 return, and the taxes you’ll file next year.
Here are four possible March Tax Moves that can help regardless of whether your tax spirit animal is Leo or Lambchop.
1. Establish or add to your IRA. f you have an IRA, Roth or traditional, and didn’t max out your contributions last year, do so now. That money can count as 2025 tax year contributions
The maximum amount you can add for last year’s purposes is $7,000 for either type of IRA. If you’re age 50 or older, you and add another $1,000.
If you don’t have an IRA, again either type, you might want to consider establishing one and making a 2025 tax year contribution by April 15. Younger savers should go the Roth route. While there’s no immediate tax benefit since you make contributions with already taxed money, you won’t owe taxes when you take our Roth funds in your retirement years.
But some folks might want to go with a traditional IRA. This could help if your contribution is tax deductible.
Know the deduction limits: But note that your traditional IRA deduction could be reduced if you have other retirement savings.
The following table shows how much of a deduction a traditional IRA contribution on your 2025 return is worth, based on your filing status and modified adjusted gross income (MAGI), if you’re covered by a retirement plan at work.
| If Your Filing Status Is | And Your 2025 Tax Year MAGI Is | Then You Can Take |
| Single or head of household | $79,000 or less | a full deduction up to the amount of your contribution limit. |
| more than $79,000 but less than $89,000 | a partial deduction. | |
| $89,000 or more | no deduction. | |
| Married filing jointly or Qualifying widow(er) | $126,000 or less | a full deduction up to the amount of your contribution limit. |
| more than $126,000 but less than $146,000 | a partial deduction. | |
| $146,000 or more | no deduction. | |
| Married filing separately | less than $10,000 | a partial deduction. |
| $10,000 or more | no deduction. | |
| If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the “Single” filing status. | ||
Regardless of which type of IRA you choose, putting money into this tax advantaged retirement vehicle in March lets it start earning sooner, adding to the power of compounding.
More Roth maneuverability: If you’re not concerned about an immediate tax deduction, a Roth IRA is generally a better move. However, the amount you can put into this tax-free retirement savings vehicle is phased out for higher earners.
But there is some good news, again tied to inflation. Adjustments based on cost-of-living data increased the phase-out range for 2025 Roth IRA contributions.
Singles and head of household filers will face a reduced Roth contribution amount for the 2025 tax year if their earnings are $150,000 to $165,000. The phase-out range for married filing jointly taxpayers is $236,000 to $246,000.
Once your income exceeds the maximum amount for your filing status, you cannot contribute to a Roth IRA.
And again, putting the money into the Roth sooner will speed up its growth.
2. Contribute to your HSA. The same tax year contribution timing shift for IRAs also applies to health savings accounts, or HSAs. That gives you until April 15 to make your 2025 tax year contribution.
Doing so helps bulk up an account that’s already a triple tax-saving champ. You get a tax deduction for contributions, tax-free growth in the account, and there’s no tax on withdrawals used to cover qualified medical expenses.
Plus, once you turn 65, an HSA can be an added retirement account. You can withdraw month from it and use it for any reason without penalty. You will, however, have to pay ordinary tax on these later-in-life non-medical distributions.
Sounds great, right? It is, but only for folks who have high-deductible health plans (HDHP). In these cases, their HSAs help pay their larger out-of-pocket medical expenses.
For 2025, HSA owners with individual HDHP coverage you can contribute up to $4,300 to an HSA. Family HDHP coverage will let you put up to $8,550 in an HSA. Policy holders who are 55 or older can sock away an additional $1,000 for the tax year.
If you can afford to max out your HSA for the prior tax year (and current one, too; check out the 2026 increases), do so. The more you can contribute, the more you can benefit from the HSA’s potential triple tax advantages.
3. Find a day camp for your kids. There’s nothing like children to refocus you on the present. But you might want to think just a tiny bit in the future here, too, like the fast-approaching summer when your youngsters are out of school and you (and your spouse if you’re married) will be working.
Many families find that day camps are a good way to provide some supervisions for their youngsters. There are lots of offerings, so you should be able to find a camp that suits your child’s interests. But you need to start looking soon. Like now. Popular day camps fill up fast.
Day camps also are good beyond occupying your youngsters while you and your spouse are at work. You can use at least part of the camp’s cost to claim the Child and Dependent Care tax credit. Even better, since it’s a tax credit, it reduces your tax bill dollar-for-dollar once you’ve calculated ow much you owe.
Depending on your income, the number of dependent children at the camp, and the camp’s costs, the credit could provide a tax break of up to $1,050 for care of one child or as much as $2,100 for camp care costs of two or more children.
The Internal Revenue Service’s Interactive Tax Assistant can help you determine if you are eligible to claim the Child and Dependent Care Credit.
This tax credit for this summer’s camp costs won’t apply until your file your 2026 return next year. But this year you’ll have that tax planning knowledge, along with the more important parental peace of mind that your youngsters are entertained, educated, and otherwise supervised while you’re at work.
4. Adjust your paycheck withholding. I know. I just blogged about this yesterday in my post on states this year that are slow issuing tax refunds. But it deserves repeating.
If you’ve already been working on or filed your 2025 tax return and discovered you owe Uncle Sam, act now to avoid a repeat next filing season. Tweaking how much comes out of your paychecks also is a good idea if you’re getting a refund.
The ideal payroll withholding situation, is to have just enough tax — not too much, not too little — taken out of your paychecks to meet your eventual annual tax bill.
The IRS’ Tax Withholding Estimator can help you arrive at the proper amount. Then just plug the online tool’s numbers into a new W-4 form you’ll give your payroll office.
Okay, these four tax moves should give you plenty to think about, for this and next year’s returns. So if, in keeping with March’s animal imagery, if any apply to you and you’re roaring to go, have at ‘em.
And taking care of these tax moves early in the month will give you head start on chilling like a lamb well before March ends.
