Key Takeaways 

• Acting before December 31 can help you secure deductions and credits that reduce what you owe for 2025.
• Easy steps like reviewing your W-4 withholding, making charitable donations, or maximizing retirement contributions can meaningfully lower taxable income.
• Reviewing income, expenses, and NIL payments now reduces filing surprises and helps you keep more of your money.

It’s hard to believe that we’re already in the last quarter of the year. For student athletes balancing classes, practices, competitions, and various sources of income—including part-time work and Name, Image, and Likeness (NIL) earnings — now is a great time to make some easy and smart tax moves to help lower your tax bill when you file your tax return. 

Start compiling all of your receipts for any tax-deductible expenses and sources of income — whether it’s wages from a campus job, NIL payments, or earnings from brand partnerships. These 10 quick and easy tax tips will help you get your finances organized and save money at tax time before the year ends!

1. Be strategic with year-end payments

If you earn NIL income from brand partnerships or appearances, for example, the timing of when you receive payments could impact your taxes. If a sponsor or brand plans to pay you in late December, this extra money in your pocket may bump you up to another tax bracket and increase the taxes you owe. If the brand is willing to make payment in early January instead, you’ll still receive it close to year-end, but you won’t have to report or pay taxes on it until you file the following year.

2. Accelerate deductions & defer income

There are a handful of tax deductions that are recognized in the year you pay them. For example, if you already own a home, you can deduct your mortgage interest paid, and if you make an extra mortgage payment on December 31, you may be able to claim the additional interest paid as a tax deduction in the same tax year. This lets you take the tax deduction immediately rather than wait an additional 12 months when you do your taxes for next year. 

3. Donate to charity

Many student athletes already volunteer through team initiatives or charity drives. By donating clothing or sports gear to a qualified charitable organization, you can help someone in need and reap the benefits of a tax deduction for non-cash and monetary donations if you itemize your tax deductions.

And if you drive to volunteer events, don’t forget that you can also deduct your mileage driven for charitable service, at the rate of 14 cents per mile. Make these donations count on your taxes by donating by December 31st. Even if you make a donation via credit card by December 31, you do not have to pay it off until the new year to receive the tax deduction.

4. Take a class

Paying for next quarter’s tuition by December 31 may give you a valuable tax credit of up to $2,000 per student if you qualify. You have two opportunities with the American Opportunity Tax Credit or the Lifetime Learning Credit.

5. Maximize your retirement

Yes, even busy student athletes can (and should) think about making a contribution to a retirement savings account, especially those earning NIL income or working part-time. Whether you contribute to a 401(k) or a Traditional IRA, you can reduce your taxable income and also save for the future.

If you are self-employed through NIL deals and contribute to a SEP IRA, you can contribute up to the lesser of 25% of your net self-employment income or $70,000 for 2025. You can make a 2025 SEP IRA contribution up until the extended tax deadline for 2025 and potentially take a deduction for your contribution.

6. Spend your FSA

If you have a Flexible Spending Account, through an athletic scholarship or federal aid and have money left, get caught up on your doctor visits. While the old “use it or lose it” rule may not still apply, you may only be able to carry over $660 worth of unused money left in your 2025 FSA account at the end of the year. Your plan may also limit the amount of time you’re able to use your funds to 2 1/2 months after the end of the plan year. Now may well be the time to schedule in your physical therapy or sports injury check-ins.

7. Use losses to offset investment gains

If you have a few investments in your portfolio that have gone down in value, did you know you can recognize your losses and use them to offset investment gains? To do this, you need to sell the losing investments and offset your losses against your gains recognized. If your losses exceed your gains, you can apply $3,000 of that loss against your regular income. Any extra will then be carried over to the next tax year.

8. Make W-4 withholding allowance adjustments

If you’ve seen income changes throughout the year, perhaps from NIL earnings or fluctuating hours during competition season, now is a good time to adjust your withholding on your W-4. The TurboTax W-4 withholding calculator can help you easily adjust your withholding to help you keep more money in your paycheck.

9. Be aware of the Other Dependent Credit (ODC)

Do you support your parents or grandparents? How about another loved one? If that happens to be you and they qualify as a non-child dependent, then make sure to take advantage of the $500 Other Dependent Credit, now made permanent by the One Big Beautiful Bill (OBBB).

10. Go green and save money on your taxes

Have you been looking into how to save money on your home energy bill or on gas? Some energy-efficient and electric vehicle tax credits remain for 2025, though eligibility and amounts have changed under the OBBB. For example, to be able to claim the federal EV tax credit on your 2025 taxes, your vehicle would need to have been purchased by September 30, 2025. Remember, credits are a dollar-for-dollar reduction of your taxes.

Don’t worry about knowing these tax rules. Meet with a TurboTax Full Service expert who can prepare, sign and file your taxes, so you can stay focused on classes and competitions, confident in the knowledge your taxes are done right. Start TurboTax Expert Full Service today, in English or Spanish, and get your taxes done and off your mind.

References

IRS, COLA increases for dollar limitations on benefits and contributions | Internal Revenue Service, August 2025

It’s hard to believe that we’re in the last quarter of the year! With the year coming to an end, now is a great time to make some easy and smart tax moves to help lower your tax bill and increase your tax refund when you file.

Start compiling all of your receipts for any tax-deductible expenses and sources of income because these 10 quick and easy tax tips will help you get your finances organized and save money at tax time before the year ends!

1. Defer bonuses: If your hard work paid off and you are expecting a year-end bonus, this extra money in your pocket may bump you up to another tax bracket and increase the taxes you owe. If your bonus bumps you up to another tax bracket, you may want to consider delaying the extra income until the beginning of next year. If your boss is able to pay you your bonus in January, you will still receive it close to year-end, but you won’t have to pay taxes on it when filing your taxes.

2. Accelerate deductions & defer income: There are a handful of tax deductions that are recognized the year you pay them. For example, if you own a home, you can deduct your mortgage interest paid, and if you make an extra mortgage payment on December 31, you may be able to claim the additional interest paid as a tax deduction in the tax year paid.

This lets you take the tax deduction immediately rather than wait an additional 12 months when you do your taxes for next year. Before using this strategy, be aware that under tax reform, if you purchased a new home after December 15, 2017, you can deduct the mortgage interest you paid based on a home loan up to $750,000 instead of $1,000,000 for homeowners who purchased before that date.

3. Donate to charity: The holiday season is coming, which is a great time to clean out your closet and household goods for those in need. You can help someone in need and reap the benefits of a tax deduction for non-cash and monetary donations given to a qualified charitable organization if you can itemize your tax deductions.

If you volunteer at a qualified charitable organization, don’t forget that you can also deduct your mileage (14 cents of every mile) driven for charitable service. Make these donations count on your taxes by donating by December 31st. Even if you make a donation via credit card by December 31, you do not have to pay it off until the new year to receive the tax deduction.

4. Take a class: Taking a course to advance your career or improve skills is also a great way to lower your taxes and boost your tax refund. Paying for next quarter’s tuition by December 31 may give you a valuable tax credit up to $2,000 per tax return with the Lifetime Learning Credit.

5. Maximize your retirement: Another great way to reduce your taxable income while building your nest egg is to make a contribution to your retirement savings account. Whether you contribute to a 401(k) or a Traditional IRA, you can reduce your taxable income and also save for the future. If you are self-employed and contribute to a SEP IRA, you can contribute up to the lesser of 25% of your net self-employment income or $66,000 for 2023 ($73,500 if you are 50 and older). You can make a 2023 SEP IRA contribution up until the extended tax deadline for 2023 and possibly take a deduction for your contribution.

6. Spend your FSA: If you have a Flexible Spending Account and have money left, get caught up on your doctor visits. While the old “use it or lose it” rule may not still apply, you may only be able to carry over $610 worth of unused money left in your 2023 FSA account at the end of the year. Your plan may also limit the amount of time you’re able to use your funds to 2 1/2 months after the end of the plan year.

7. Buy Low, Sell Low: If you have a few investments in your portfolio that have gone down in value, did you know you can recognize your losses and use them to offset investment winners? To do this, you need to sell the losing investments and offset your losses against your gains recognized. If your losses exceed your gains, you can apply $3,000 of that loss against your regular income. Any extra will then be passed to the next tax year.

8. Make W-4 Withholding Allowance Adjustments: If you did not have the tax outcome you were expecting when you filed the previous year’s taxes or experienced life changes like having a baby, getting a pay increase or decrease, unemployment, or a new job, now is a good time to adjust the amount of taxes withheld from your paycheck by adjusting your withholding on your W-4 and refiling the form with your employer. TurboTax W-4 withholding calculator can help you easily adjust your withholding, whether you want a bigger tax refund or more money in your paycheck.

9. Be Aware of the Other Dependent Credit (ODC): Do you support your parents or grandparents? How about another loved one? If that happens to be you and they qualify as a non-child dependent, then make sure to take advantage of the new “Other Dependent Credit” worth up to $500, which can reduce the taxes you owe dollar-for-dollar by $500.

10. Go Green and Save Money on Your Taxes: Have you been looking into how to save money on your home energy bill or on gas? Go green and take advantage of the energy-efficient credits or the electric vehicle credit before the end of the year and save money on your taxes.  Remember, credits are a dollar-for-dollar reduction of your taxes.

Don’t worry about knowing these tax rules. Meet with a TurboTax Full Service expert who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Expert Full Service today, in English or Spanish, and get your taxes done and off your mind.