March is the perfect time for taxpayers in Castle Pines, Morrison, and Littleton to grab a few smart tax wins before the April 15 deadline sneaks up.
Mountain Bookkeeping & Tax Solutions works with Colorado families and small business owners all year long, and there are four key moves that may help improve your overall tax outcome and set you up for a stronger 2026 season.
At a glance
- 1) IRA contribution (still counts for 2025)
- 2) HSA contribution (if eligible, still counts for 2025)
- 3) Plan now for summer day camps + Child & Dependent Care Credit tracking
- 4) Fix paycheck withholding so 2026 is smoother
1. Top off (or start) your IRA before April 15
You still have until April 15, 2026 to make IRA contributions that count for your 2025 tax year. Thats a big opportunity for taxpayers around Castle Pines, Morrison, and Littleton who havent maxed out retirement contributions yet.
For 2025, you can contribute up to $7,000 to a traditional or Roth IRA, or $8,000 if youre 50 or older.
Key points Mountain Bookkeeping clients ask about:
- Traditional IRA: Your contribution may be tax-deductible, but the deduction can be reduced or eliminated if you or your spouse are covered by a retirement plan at work and your income is above certain thresholds.
- Roth IRA: No upfront deduction, but qualified retirement withdrawals can be tax-free; contribution limits phase out as income rises, based on filing status and modified adjusted gross income.
Adding money in March gives your retirement dollars more time to grow through compounding.
We can help you decide whether a Roth or traditional IRA is better for your situation and how much to contribute without hurting your monthly budget.
2. Maximize your Health Savings Account (HSA)
If you have a high-deductible health plan (HDHP), your Health Savings Account is one of the most powerful tax tools available. Just like IRAs, you can make 2025 HSA contributions up to April 15, 2026.
HSAs offer a rare triple tax advantage: contributions can be deductible, growth is tax-free, and withdrawals for qualified medical expenses are not taxed.
For 2025:
- Individual HDHP coverage:You can contribute up to $4,300.
- Family HDHP coverage: You can contribute up to $8,550.
- Age 55 or older: You can add an extra $1,000 catch-up contribution.
After age 65, you can also tap your HSA for non-medical expenses without penalty (ordinary income tax still applies), which makes it a flexible retirement bucket as well. Mountain Bookkeeping & Tax Solutions can help you confirm HSA eligibility, choose smart contribution amounts, and keep good records for medical reimbursements.
3. Plan ahead for summer day camps and the Child and Dependent Care Credit
Parents in Colorado know that summer camps fill up fast, and theyre not cheap. The good news: certain day camp costs for your kids may qualify for the Child and Dependent Care Credit if you (and your spouse, if married) work while your children are at camp.
This is a tax credit, which means it reduces your tax bill dollar-for-dollar once its calculated. Depending on your income, the number of qualifying children, and your eligible expenses, the credit amount can vary.
Planning tip: In many cases, up to $3,000 of expenses for one child or $6,000 for two or more children may be eligible. The credit percentage depends on income.
These 2026 summer camp costs typically get claimed on your 2026 tax return, but planning in March helps you:
- Pick camps that clearly meet IRS rules
- Track payments properly
- Organize documentation so you don’t miss the credit later
Ginny can help you evaluate which childcare and camp expenses qualify and set up a simple tracking system so youre not digging through statements next tax season.
4. Fix your paycheck withholding now so 2026 is smoother
If your early look at your 2025 federal return shows that you either owed a big balance or got a huge refund, March is a great time to adjust your payroll withholding.
The goal is to have just right withholdingnot too high (an interest-free loan to the government), and not too low (a surprise bill next April).
The IRS Tax Withholding Estimator can help you dial in the right amount and then update your W-4 with your employer. Mountain Bookkeeping & Tax Solutions regularly reviews clients draft returns, identifies why they owed or overpaid, and helps complete a new W-4 so paychecks and next years refund are better aligned.
Why work with Mountain Bookkeeping & Tax Solutions this March?
Whether youre a young family in Castle Pines planning for day camp, a Morrison small business owner looking at retirement contributions, or a Littleton professional trying to fix withholding, you dont have to figure this out alone. Ginny brings a calm, practical approach to tax planning so you can make these March moves with confidencenot guesswork.
Want help choosing the right move?
Schedule a consultation through the contact page on our website. Well review your situation and build a plan that matches your income, goals, and cash flow.
Contact Mountain BookkeepingEducational information only; tax rules vary by situation.