Dear Chuck,
I hate paying taxes. With the many changes under President Trump, is there anything I should do differently to legally avoid paying more taxes?
Legal Tax Avoidance
Dear Legal Tax Avoidance,
I often do not agree with how tax dollars are used (or wasted), but there are many good reasons to legally pay the taxes that you owe, not the least of which is that Jesus told us to. It is also good stewardship to do your best to avoid overpaying taxes, but my hope is that you are not trying to skirt the law and escape paying what you honestly owe. It is better to seek an “income tax minimization” strategy rather than a “tax avoidance” strategy.
The following steps can assist you and potentially enable you to lower your federal tax bill.
Year-End Tax Prep
No matter how much we dread the work of doing taxes, prepping for April’s filing can be financially rewarding. However, you need to take action now.
Organize Documents
- Gather pay stubs, bank and credit card statements, investment account statements, and last year’s tax return.
- Check your Flexible Spending Accounts (FSA), and use remaining funds before they expire.
Maximize Tax-Advantaged Contributions
- Retirement Accounts: Contribute to 401(k) or 403(b) by December 31. The limit for 2025 is $23,500 plus $7,500 catch-up contribution for anyone aged 50 or older. $11,250 is allowed for those 60–63 in some employer plans.
- IRAs: You can contribute to traditional and Roth accounts until the tax-filing deadline (April 15, 2026), but workplace retirement contributions must be made by year-end.
- HSAs: Try to maximize contributions, especially if you have a high-deductible health plan. Unlike FSAs, unused funds can be used to pay for future qualified medical expenses. Contributions can be made until the tax deadline in April, but if added outside of payroll, you will not get the same tax benefit as contributing through payroll.
- Qualified Charitable Contributions: Gifts to a qualified charity by December 31 will be tax-deductible should you qualify for itemization on your 2025 federal tax return.
Review Deductions and Credits
- Itemized Deductions: For 2025, married couples have a standard deduction of $31,500. The amount for single filers is $15,750. Review your medical expenses, home mortgage interest, state and local taxes, and theft and casualty losses due to a federally declared disaster.
- Tax Rules: New tax rules may impact your giving strategy. Consider bunching donations into a single year if itemized deductions are below the level of the standard deduction. Maximize your tax benefits with charitable contributions that support your church, para-church organizations, and reputable, deserving nonprofits. You can donate highly appreciated long-term assets to avoid tax on the gained income. Read about estate tax and lifetime gifting strategies here.
- Tax Credits: Check eligibility for the Child Tax Credit or the Earned Income Tax Credit.
- AMT: Be aware of the Alternative Minimum Tax (AMT) rules if you are a high-income earner.
Education Breaks
- College: Trim college costs with qualified educational expenses. You might want to consider prepaying the first semester of 2026 this year if you need the deduction this year.
- 529s: Some states may recognize contributions made to a 529 college savings account.
Plan for Investment Income
- Tax-Loss Harvesting: Sell losing investments to offset gains and reduce taxable income. Be aware of the wash sale rule.
- Roth Conversions: It may be beneficial for you to convert a traditional IRA to a Roth IRA for future tax-free withdrawals and no required minimum distributions. However, conversion generates a tax bill. So it may be worth planning for the future. This conversion calculator may prove helpful. If 2026 has market volatility, converting when stock prices drop means you can convert more shares at a lower price.
Defer Income
- Those who freelance or have gig income can limit taxable income this year by delaying billing for services until after January 1st. Of course, that will increase taxable income for 2026. If you expect to be in a higher tax bracket next year, do not defer income. Do your research, or seek the help of a professional to help with the timing of this step.
Avoid the “Kiddie Tax”
- This tax was created to prevent families from shifting taxable investment income from the parents’ high tax bracket to a child’s low tax bracket.
Remember Required Minimum Distributions (RMDs)
- Starting at age 73, withdrawals are required from traditional IRAs and 401(k) accounts, even if income is not needed. These strategies may reduce taxes on that income.
Schedule a Meeting with a Tax Advisor
- If your tax situation is complex, seek the help of a professional to maximize deductions and credits.
Pay to Caesar What Is Caesar’s
The Bible makes clear that paying taxes is a responsibility of a nation’s citizens. When the Pharisees approached Jesus with a question about paying taxes, they hoped to trip him up. Upon hearing his answer, however, they marveled and went away.
“‘Is it lawful to pay taxes to Caesar, or not?’ But Jesus, aware of their malice, said,
‘Why put me to the test, you hypocrites? Show me the coin for the tax.’
And they brought him a denarius.
And Jesus said to them, ‘Whose likeness and inscription is this?’
They said, ‘Caesar’s.’ Then he said to them,
‘Therefore render to Caesar the things that are Caesar’s, and to God the things that are God’s.’”
Matthew 22:17–21 (ESV)
Jesus is asking us for far more than the coins collected by Caesar; He is asking for our hearts. When we give Him our hearts, we don’t have to fear the demands that Caesar may place upon us because we belong to the Everlasting God. So pay the taxes you owe, and remember, no matter how much you do not like it, we have better and lasting treasures coming when we give our hearts to Christ.
Additional Resources
Do you want more tools and tips on financial stewardship? Are you interested in receiving encouraging ministry updates from around the world? Sign up to receive the Crown Newsletter emails by using the form on the homepage at Crown.org.
This article was originally published on The Christian Post on December 12, 2025.
