--- title: How to Lower Your Taxable Income With Last-Minute IRA Contributions description: You may still be able to lower your tax bill by making last-minute IRA contributions. Here's how. authors: - name: Mary Ellen Cagnassola role: Reporter url: https://money.com/author/mary-ellen-cagnassola/ bio: Mary Ellen (M.E.) Cagnassola is a former reporter at Money, where she covered Social Security, retirement, housing, and employment. Her work reflects her commitment to service and equity in consumer finance. education: Rutgers University, BA Journalism at_money_since: 2021 articles: 205 covers: - Taxes - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping former_staff: true editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: A graduate of the University of Florida, Julia has more than eight years of experience in personal finance journalism. In addition to overseeing news and newsletters, she leads Money’s tax coverage, which includes extensive reporting on tax credits, policy changes and the IRS. education: University of Florida at_money_since: 2018 articles: 453 covers: - Taxes - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum updaters: - name: Pete Grieve role: Lead News Reporter url: https://money.com/author/pete-grieve/ bio: Pete Grieve is a personal finance reporter. In his time at Money, Pete has covered everything from car buying to credit cards to the housing market. education: University of Chicago, BA Political Science at_money_since: 2022 articles: 600 covers: - Taxes - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping social: - https://twitter.com/pete_grieve - https://linkedin.com/in/pete-grieve-b5aa02138 - https://www.facebook.com/petegrieve4 published: '2026-03-11T15:57:28.000Z' modified: '2026-03-11T15:57:28.000Z' section: Taxes tags: - News - Taxes word_count: 701 canonical: https://money.com/lower-taxes-ira-contribution-deadline/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Illustration of a dog holding a bone, with multiple bones buried underneath the ground](https://img.money.com/2025/03/Taxes-2024-IRA-Contributions.jpg) The [tax filing deadline](https://money.com/tax-deadlines-federal-state-extension/) is coming up on April 15, but it’s not too late to reduce what you owe on your 2025 federal income tax return. There’s still time to lower your tax bill, or even increase your refund, while contributing to your retirement savings. If you have a traditional individual retirement account, or IRA, you can put money into it for the previous year right up to Tax Day. "This creates an opportunity to lower your tax bill even after the year has ended," Colleen Carcone, director of wealth planning strategies at TIAA Wealth Management, explains in an email to Money. "Having until the tax filing deadline to make contributions for the prior year gives you extra months to assess your tax situation, review income, calculate potential tax liability and make strategic contributions." Aside from potentially lowering your taxable income, there are a few benefits to adding to your IRA now. Keep reading to find out what you need to know about last-minute IRA contributions. **April 15, 2026** [See Details](/p/intuit-turbo-tax?ap_referrer=%2Flower-taxes-ira-contribution-deadline%2F&pcuid=b6859cab1da0&skip_rechoose_link=1&url=https%3A%2F%2Fwww.kqzyfj.com%2Fclick-101098705-16985108&vertical_alias=tax-preparation&wafid=17703) ## How do I lower my 2025 taxes with IRA contributions? Every year, the IRS sets maximums for how much you can contribute to your retirement accounts. The most you can put into an IRA in 2026 — both traditional and Roth — is $7,500. If you’ll be 50 or older by the end of this year, you can make an extra $1,100 in “catch-up” contributions. But what we're talking about here are the slightly-lower 2025 IRA contribution limits, since the taxes you're filing are technically for last year. Only traditional IRAs can lower your taxable income. With a [Roth IRA,](https://money.com/best-roth-ira/) you contribute after-tax dollars, which means you aren’t able to deduct anything. Traditional IRA contributions reduce your taxable income dollar for dollar, and if you contribute enough, they may drop you into a lower tax bracket. This can lower your 2025 tax bill and lead to you getting more money back in your [tax refund](https://money.com/wheres-my-refund/). Last-minute IRA contributions can also help taxpayers qualify for deductions with income cutoffs, like the new "[senior bonus](https://money.com/senior-bonus-deduction-retirees/)" deduction, Carcone added. How do you know how much you’ll save from traditional IRA contributions? To generate a rough estimate while you’re preparing your tax return, multiply your marginal tax rate by the amount you put into your IRA. For example, if you have a 22% tax rate and contribute the $7,000 maximum for 2025, you’d save about $1,540. Keep in mind, though, that some exceptions can limit the amount you're able to deduct. If you have income over a certain level and you and your spouse have a workplace retirement plan, for example, you won’t be able to get the full deduction. On the flipside, you may be able to deduct all your IRA contributions up to the limit if you *don’t* have a workplace plan. ## Tax deductions for 2025 IRA contributions Let’s say you or your spouse are enrolled in an employer retirement plan such as a 401(k). The table below will show you how much the IRS will allow you to deduct based on your modified adjusted gross income (MAGI). | Filing status | Modified adjusted gross income | Deduction | | --- | --- | --- | | Single or head of household | $79,000 or less | Full deduction up to the amount of your contribution limit | | Single or head of household | More than $79,000 but less than $89,000 | Partial deduction | | Single or head of household | $89,000 or more | No deduction | | Married filing jointly or qualifying widow(er) | $126,000 or less | Full deduction up to the amount of your contribution limit | | Married filing jointly or qualifying widow(er) | More than $126,000 but less than $146,000 | Partial deduction | | Married filing jointly or qualifying widow(er) | $146,000 or more | No deduction | | Married filing separately | Less than $10,000 | Partial deduction | | Married filing separately | $10,000 or more | No deduction | _Source: IRS_ The following table shows the 2025 IRA deduction limits if you and/or your spouse are not covered by a workplace retirement plan. | Filing status | Modified adjusted gross income | Deduction | | --- | --- | --- | | Single, head of household or qualifying window(er) | Any amount | Full deduction up to the amount of your contribution limit | | Married filing jointly or separately with a spouse who isn't covered by a workplace retirement plan | Any amount | Full deduction up to the amount of your contribution limit | | Married filing jointly with a spouse who is covered by a workplace retirement plan | $236,000 or less | Full deduction up to the amount of your contribution limit | | Married filing jointly with a spouse who is covered by a workplace retirement plan | More than $236,000 but less than $246,000 | Partial deduction | | Married filing jointly with a spouse who is covered by a workplace retirement plan | $246,000 or more | No deduction | | Married filing separately with a spouse who is covered by a workplace retirement plan | Less than $10,000 | Partial deduction | | Married filing separately with a spouse who is covered by a workplace retirement plan | $10,000 or more | No deduction | _Source: IRS_ Opening an IRA typically takes minutes and can be done online or through a brick-and-mortar institution. Savers can set up IRAs through mutual fund companies as well as banks. Once you've opened an account, you can transfer money directly from your bank account up to the contribution limit up to the tax filing deadline. You can also fund your IRA with cash or check, or roll over a 401(k) or an IRA from another provider. You don't have to fund your IRA all at once — you can set up a contribution schedule so that you contribute a certain amount regularly throughout the year. When you file your tax return, you can then claim a deduction and potentially lower your taxable income. *This story was originally published in 2024. 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