Tax season is officially here. For some of you, that means pulling together receipts and tracking down forms. For others, it means handing everything off to your CPA and hoping for the best.
But whether you do your own taxes or work with a professional, there's more to tax preparation than just filing a return. The decisions you make now and the questions you ask can have a significant impact on your financial future.
This guide is designed specifically for our clients here in Oakland, Winter Garden, and the Greater Orlando area. We're going to walk through what you need to know as you prepare your 2025 taxes, broken down by life stage: one section for families building wealth, and another for pre-retirees and retirees managing income and legacy.
Let's make sure you're not leaving money on the table or missing opportunities that could save you thousands down the road.
Part 1: For Families (Building Wealth in Your Peak Earning Years)
If you're raising a family in your mid-30s to mid-40s, you're likely juggling a lot: climbing the career ladder, raising kids, saving for college, and trying to build wealth for the future. Tax season is a perfect time to make sure your money is working as efficiently as possible.
- Are You Maximizing Retirement Contributions?
This is the single most important question for families in their peak earning years.
For 2025, the contribution limits were:
- 401(k)/403(b): $23,000 (under 50) | $30,500 (50+)
- IRA: $7,000 (under 50) | $8,000 (50+)
Here's what to check:
Did you max out your 401(k)? If not, why not? If it's because you couldn't afford to, that's understandable. But if it's because you never adjusted your contribution percentage, that's fixable for 2026.
Did you contribute to an IRA? Remember, you have until April 15, 2026 to make 2025 IRA contributions. If you haven't maxed out yet and you have the cash available, this is one of the easiest ways to reduce your 2025 tax bill.
Are you using the right type of account? Traditional contributions lower your taxes today. Roth contributions grow tax-free forever. For high earners in your 30s and 40s, having a mix of both gives you flexibility in retirement.
Action step: Review your 2025 pay stubs to see what you contributed. Then talk to your advisor about adjusting your 2026 contributions to max out if possible.
- Did You Take Advantage of the Big Beautiful Bill Deductions?
The One Big Beautiful Bill Act, passed in July 2025, created several new deductions that apply to your 2025 taxes. Depending on your situation, you might qualify for significant savings.
Overtime Deduction:
If you worked overtime in 2025, you can deduct up to $12,500 of qualified overtime pay ($25,000 if married filing jointly). This applies to the "extra" portion of time-and-a-half pay.
Who this helps: Professionals in high-demand fields who work extra hours, dual-income families where one spouse works overtime, and anyone paid hourly with overtime eligibility.
This deduction phases out for higher earners (starting at $150,000 for singles, $300,000 for married couples), but if you're under those thresholds, make sure your tax preparer is claiming it.
Auto Loan Interest Deduction:
If you bought a new car in 2025 and financed it, you may be able to deduct up to $10,000 of the interest you paid. The vehicle must be manufactured and assembled in the U.S. and used for personal purposes.
This is huge for families who bought a new SUV, minivan, or truck in 2025. Make sure you have your loan statements showing interest paid.
Child Tax Credit Increase:
The Child Tax Credit is now permanent at $2,200 per child (up from $2,000). If you have kids under 17, make sure you're claiming the full amount.
Action step: Bring these up specifically with your tax preparer. These are new deductions, and not everyone is up to speed yet.
- Are You Saving for College Tax-Efficiently?
If you're contributing to a 529 plan, great. But are you optimizing it?
Florida doesn't offer a state tax deduction for 529 contributions (because we don't have state income tax), but the federal benefits are still valuable:
- Contributions grow tax-free
- Withdrawals for qualified education expenses are tax-free
- You maintain control of the account
What to review:
- Are you contributing enough to make meaningful progress toward your college savings goal?
- Are you investing the 529 appropriately based on how many years until your child starts college?
- Did you know you can now roll unused 529 funds into a Roth IRA for your child (subject to certain limits)? This makes 529s less risky if your child doesn't go to college or gets scholarships.
Action step: Review your 529 balance and contributions with your financial advisor. Make sure your college savings strategy aligns with your overall financial plan.
- Do You Have Adequate Insurance (And Is It Tax-Deductible)?
Insurance isn't exciting, but it's critical for families with young kids and high earning potential.
Life insurance: If someone depends on your income, you need coverage. A common guideline is 10-12 times your annual income. If you make $120,000, that's $1.2-1.4 million in coverage.
Most employer-provided life insurance isn't enough. And if you leave your job, you lose it.
Disability insurance: Your ability to earn income is your most valuable asset. If you couldn't work for six months due to illness or injury, could your family survive financially?
Check what you have through work, and consider supplementing with a personal policy.
Are premiums deductible? Generally, no - unless you're self-employed. If you're self-employed, health insurance premiums are deductible, and long-term care insurance premiums may be partially deductible depending on your age.
Action step: Review your insurance coverage with your advisor. Make sure your family is protected if something happens to you.
- Are You Thinking About Tax Diversification for the Future?
Right now, you're probably focused on lowering your taxes today. That's smart. But you also need to think about taxes in retirement.
If all your retirement savings are in traditional 401(k)s and IRAs, you'll pay taxes on every dollar you withdraw. And those required minimum distributions starting at age 73 could push you into higher tax brackets, increase Medicare premiums, and make more of your Social Security taxable.
Having a mix of traditional, Roth, and taxable accounts gives you flexibility.
Action step: Talk to your financial advisor about Roth contributions or conversions. Paying some taxes now might be smarter than deferring everything.
Part 2: For Pre-Retirees and Retirees (Managing Income, Minimizing Taxes, Protecting Your Legacy)
If you're within 10 years of retirement or already retired, your tax situation is very different from someone in their 30s and 40s. You're less focused on building wealth and more focused on managing income, minimizing taxes, and making sure your money lasts.
- Are You Optimizing Your Retirement Income Strategy?
Once you're retired, taxes don't go away. In fact, for many retirees, taxes become more complex because you're managing multiple income sources:
- Social Security
- Pension (if you have one)
- Traditional IRA/401(k) withdrawals
- Roth IRA withdrawals (tax-free)
- Taxable investment income
The goal: Withdraw money in a tax-efficient order to minimize your lifetime tax bill.
Questions to ask:
- Which accounts should I withdraw from first?
- Should I delay Social Security to reduce taxes on other income?
- Am I in a lower tax bracket now than I will be at 73 when RMDs kick in?
- Should I be doing Roth conversions now while my income is lower?
Action step: Work with your financial advisor to model different withdrawal strategies. A well-planned approach can save you tens of thousands in taxes over retirement.
- Did You Qualify for the Senior Deduction?
If you're 65 or older, the Big Beautiful Bill Act created a new deduction just for you: an extra $6,000 per person ($12,000 for couples where both are 65+).
This is on top of the standard deduction. For 2025, that means:
- Single filers 65+: Standard deduction of $15,000 + $6,000 senior deduction = $21,000
- Married filing jointly (both 65+): Standard deduction of $30,000 + $12,000 senior deduction = $42,000
The catch: It phases out for higher earners (starting at $75,000 for singles, $150,000 for married couples).
If you're under those thresholds, this is a significant tax break. Make sure your tax preparer is claiming it.
Action step: Work with your CPA to determine if you qualify for the senior deduction.
- Are You Using Qualified Charitable Distributions (QCDs)?
If you're 70½ or older and you give to charity, a QCD might be the most tax-efficient way to do it.
How it works:
- You donate up to $105,000 directly from your IRA to a qualified charity
- The donation counts toward your Required Minimum Distribution (RMD)
- You don't pay taxes on the amount donated
- You don't have to itemize to get the benefit
Why this matters:
If you're required to take an RMD but you don't need the money, that distribution increases your taxable income, which can push you into a higher tax bracket, increase your Medicare premiums (IRMAA), and make more of your Social Security taxable.
A QCD avoids all of that. You satisfy your RMD requirement, support causes you care about, and lower your taxable income.
Action step: If you're charitably inclined and taking RMDs, talk to your advisor about incorporating QCDs into your annual giving strategy.
- Are You Managing IRMAA (Medicare Premium Surcharges)?
If you're on Medicare, your income from two years ago determines what you pay for Medicare Part B and Part D premiums.
For 2026 Medicare premiums, your 2024 income is what matters. For 2027, it's your 2025 income.
Here's why this matters:
Standard Medicare Part B premium in 2026: ~$185/month
But if your income exceeds certain thresholds, you pay more:
- Single income over $106,000 (married over $212,000): You pay more
- Income over $133,000 (married over $266,000): Even more
- It goes up from there in tiers
A large income event like a big Roth conversion, stock sale, or bonus can trigger IRMAA surcharges two years later.
Action step: Before making any major financial moves in 2026, model out the potential IRMAA impact for 2028. Sometimes it makes sense to spread income over multiple years to avoid higher premiums.
- Have You Reviewed Your Beneficiaries Recently?
Tax preparation is a good reminder to make sure your beneficiary designations are up to date.
Why this matters:
Beneficiary designations override your will. If your 401(k) still lists your ex-spouse from 20 years ago, that's who gets the money—regardless of what your will says.
What to review:
- Retirement accounts (401(k), IRA, Roth IRA)
- Life insurance policies
- Annuities
- Bank and brokerage accounts with transfer-on-death designations
Questions to ask:
- Are the people I listed still the right people?
- Are they still alive?
- If I have contingent beneficiaries, are those still accurate?
- Do my beneficiaries know where these accounts are?
Action step: Schedule a beneficiary review with your financial advisor. Make sure everything reflects your current wishes.
- Are You Taking Advantage of Florida's Tax Benefits?
Living in Florida comes with real tax advantages, especially for retirees.
No state income tax: Social Security, pensions, and IRA withdrawals are all free from state income tax. If you moved from New York, California, or New Jersey, you're saving thousands annually.
Homestead exemption: If you own your primary residence, filing for a homestead can save hundreds or thousands on property taxes each year.
Portability: Moving within Florida? You may be able to transfer your Save Our Homes benefit to your new home, protecting you from sharp property tax increases.
Action step: If you recently moved to Florida or bought a home, apply for your homestead exemption by March 1, 2026.
Questions to Ask Your Financial Advisor After You File Your 2025 Taxes
Once your return is filed, don't just put it away and forget about it. Your completed tax return is one of the most valuable tools for making smarter financial decisions going forward.
Here are the strategic questions to bring to your financial advisor:
- Based on my 2025 tax return, am I saving enough for retirement?
Your tax return shows exactly how much you contributed to retirement accounts last year. Look at the numbers and ask yourself: is this enough to retire when and how I want?
If you're in your 30s or 40s and you're only contributing enough to get the employer match, you're probably not saving enough for a comfortable retirement. If you're in your 50s and playing catch-up, you might need to be maxing out contributions.
Your advisor can run projections based on your current savings rate and show you whether you're on track or how much you need to adjust.
- Should I be shifting from traditional to Roth contributions?
Look at your 2025 tax return. What bracket are you in? How does that compare to where you expect to be in retirement?
If you're in a relatively low tax bracket now - maybe you took time off work, had a lower-income year, or you're recently retired but haven't started RMDs yet - this might be the perfect time to shift more contributions to Roth accounts or even do Roth conversions.
Paying taxes now at a known, lower rate can save you significantly when you're pulling money out in retirement at potentially higher rates.
- Does my investment allocation make sense from a tax perspective?
Not all investments are taxed the same way. Your financial advisor should be thinking about tax location, where you hold different types of investments, to minimize taxes.
For example:
- Tax-inefficient investments (bonds, REITs, actively managed funds) → Hold in tax-deferred accounts like IRAs
- Tax-efficient investments (index funds, ETFs, stocks held long-term) → Hold in taxable brokerage accounts
If your portfolio isn't structured with taxes in mind, you might be paying more than you need to every year.
- Should I be using tax-loss harvesting in my taxable accounts?
If you have investments in a regular brokerage account (not an IRA or 401(k)), tax-loss harvesting can help offset gains and reduce your tax bill.
The strategy: sell investments that have lost value, use those losses to offset capital gains, and reinvest in something similar to stay in the market.
This isn't a one-time thing; it should be part of your ongoing investment strategy throughout the year, especially during market volatility. Your advisor should be looking at these opportunities regularly.
- What does my tax return tell me about my Medicare premiums in two years?
If you're on Medicare or approaching it, this one's critical.
Your 2025 income determines your 2027 Medicare premiums. If you had a high-income year - big bonus, stock sale, large Roth conversion - you might face IRMAA surcharges in 2027.
Your advisor should be modeling this out before you make any major financial moves. Sometimes it makes sense to spread income over multiple years to avoid triggering higher premiums.
- Am I positioned to minimize taxes in retirement?
Filing your taxes is a good reminder to think long-term. Ask your advisor to walk through what your tax situation will look like in retirement:
- When should I start Social Security to minimize taxes?
- How do I create a tax-efficient withdrawal strategy across multiple account types?
- Should I be doing Roth conversions now to reduce RMDs later?
- How do I avoid the "tax torpedo" where Social Security becomes taxable because of other income?
The decisions you make today, while you're still working or early in retirement, have a huge impact on your tax bill 10, 20, or 30 years from now.
The Bottom Line: Your Tax Return Is a Planning Tool
Filing your taxes is backward-looking. You're reporting what already happened in 2025.
But smart financial planning is forward-looking. Your completed tax return gives you a clear picture of where you are, and your financial advisor can help you figure out where you need to go.
The best time to have these conversations? Right after you file. The numbers are fresh, you're already thinking about taxes, and you have a full year ahead to make strategic adjustments.
At LaPorte Financial, we work with families and retirees here in Oakland, Winter Garden, and throughout Central Florida to integrate tax planning into comprehensive financial strategies. We coordinate with your CPA to make sure every aspect of your financial life works together efficiently, not just this year, but for the long term.
Whether you're building wealth in your peak earning years or managing retirement income, we're here to help you make decisions that minimize your lifetime tax bill and maximize what you keep.
Ready to turn your 2025 tax return into a roadmap for 2026 and beyond? Schedule a conversation with Mike today.
Disclaimer: This information is for educational purposes only and should not be considered tax or legal advice. Tax laws are complex and subject to change. Please consult with a qualified tax professional or CPA before making any tax-related decisions. LaPorte Financial does not provide tax preparation or legal services but works collaboratively with your tax and legal professionals to support your overall financial strategy.