7 Last-Minute Tax Strategies for High-Income Earners That Still Work in April

If you earn $500,000 or more annually and haven’t finalized your return, there are still powerful tax strategies available to you right now — even in April. Most high-income earners assume the planning window closed on December 31, but that’s simply not the case. Several meaningful moves remain on the table between now and the filing deadline, and for individuals with complex financial lives, the savings can be substantial.

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The difference between mass-market tax advice and what actually works for high-net-worth households is significant. A family earning $75,000 benefits from standard deduction optimization. A family earning $750,000 — with concentrated equity, rental income, deferred compensation, and multi-entity structures — needs an entirely different playbook. This post covers the tax strategies that still work in April for earners in that latter category.

Why April Tax Planning Is Different for High-Income Earners

For most Americans, tax season means gathering W-2s and clicking through software. For high-net-worth individuals, it means reviewing a web of income sources, investment gains, estimated payments, and entity structures that interact in complex ways.

The stakes are higher, too. At the 37% federal marginal rate (which applies to taxable income over $609,350 for married filers in 2024), plus the 3.8% Net Investment Income Tax (NIIT), every dollar of missed planning can cost more than 40 cents in combined federal tax. Add state taxes where applicable — though Florida residents enjoy no state income tax — and the incentive to act before April 15 becomes enormous.

Here’s the critical distinction: mass-market taxpayers have fewer levers to pull after year-end, while high-income earners still have several. Retirement contributions, entity elections, charitable structures, and extension strategies all remain viable. Let’s walk through each one.

Strategy 1: Maximize Retirement Contributions Before the Deadline

Tax Strategies Using IRA and SEP Contributions

The most straightforward April move is also one of the most overlooked by high earners: you can still make IRA contributions for the prior tax year up until April 15. For 2024, the traditional IRA contribution limit is $7,000 ($8,000 if you’re 50 or older).

Now, if you’re covered by an employer plan and your modified adjusted gross income (MAGI) exceeds $87,000 (single) or $143,000 (married filing jointly), you cannot deduct a traditional IRA contribution. But here’s where the strategy pivots: you can still make a non-deductible IRA contribution and immediately convert it to a Roth — the backdoor Roth strategy. This doesn’t reduce this year’s taxes, but it creates a permanently tax-free growth vehicle.

For business owners and self-employed professionals, the opportunity is larger. SEP-IRA contributions can be made up to the filing deadline, including extensions. The 2024 limit is 25% of net self-employment income, up to $69,000. If you file an extension, you have until October 15 to fund a SEP-IRA and claim the deduction on your 2024 return. This is one of the most valuable last-minute tax strategies available to business owners.

According to the IRS SEP-IRA guidelines, the plan must be established by the filing deadline (including extensions) to qualify for the deduction.

Solo 401(k) Employer Contributions

If you already have a Solo 401(k) established, you can still make employer profit-sharing contributions up to the filing deadline (or extended deadline). The combined employee and employer limit for 2024 is $69,000 ($76,500 with catch-up contributions for those 50+). Note that employee elective deferrals must have been made by December 31, but the employer portion can still be contributed now.

This is a critical nuance. Many high-earning business owners leave tens of thousands of dollars of deductions unused simply because they didn’t realize the employer contribution window extended past year-end. Consult a qualified tax professional for your specific situation, as contribution limits depend on your entity structure and compensation.

Strategy 2: Charitable Giving Structures That Still Apply

Qualified Charitable Distributions for Those Over 70½

If you’re over 70½ and hold significant IRA balances, Qualified Charitable Distributions (QCDs) remain one of the most efficient tax strategies available. A QCD allows you to direct up to $105,000 (the 2024 limit, indexed for inflation) from your IRA directly to a qualified charity. The distribution satisfies your Required Minimum Distribution but is excluded from taxable income entirely.

Why does this matter for high-income retirees? Because QCDs reduce your adjusted gross income (AGI), which in turn can help you:

• Avoid IRMAA surcharges on Medicare Parts B and D (which kick in at MAGI above $103,000 for single filers in 2024)
• Reduce the taxability of Social Security benefits
• Stay below thresholds that trigger the 3.8% Net Investment Income Tax
• Minimize state-level tax exposure in states with income taxes

QCDs must be completed by the time you file your return. If you haven’t taken your 2024 RMD yet and want it structured as a QCD, coordinate with your custodian immediately. The IRS RMD FAQ page provides additional guidance on timing requirements.

Donor-Advised Fund Contributions and Bunching

While a donor-advised fund (DAF) contribution would have needed to be made by December 31 to count for the 2024 tax year, understanding this structure is essential for your April planning. If you missed the window, now is the time to establish a DAF for 2025 and implement a charitable bunching strategy — concentrating two or three years of giving into a single year to exceed the standard deduction threshold.

For a married couple with $300,000 in annual income who gives $20,000 per year to charity, bunching three years of gifts ($60,000) into one year — combined with state and local taxes, mortgage interest, and other deductions — can push itemized deductions well above the $29,200 standard deduction. In the other two years, they take the standard deduction, generating a larger cumulative tax benefit.

Strategy 3: File an Extension and Unlock Additional Planning Time

Why High-Income Earners Should Consider Extensions as Tax Strategies

Filing an extension is not a red flag. It’s a planning tool — and for complex returns, it’s often the smartest move you can make. An extension gives you until October 15 to file your return, which opens up additional time for several critical actions:

1. SEP-IRA contributions — as discussed, the contribution deadline extends with your filing deadline
2. Entity election changes — certain S-Corp elections and entity restructuring can be finalized
3. K-1 reconciliation — if you have partnership or S-Corp income, K-1s often arrive late; filing under extension avoids inaccurate reporting
4. Roth conversion analysis — additional time to model whether a partial conversion in the current year makes sense given your final income picture

Important: An extension to file is not an extension to pay. You must estimate and pay any taxes owed by April 15 to avoid penalties and interest. Work with your CPA or tax advisor to calculate a reasonable estimate. The IRS extension guidelines explain how to file Form 4868.

Strategy 4: Estimated Tax Payments and Penalty Avoidance

Safe Harbor Tax Strategies for High Earners

High-income earners face an underpayment penalty if they haven’t paid at least 110% of the prior year’s tax liability (or 100% of the current year’s liability) through withholding and estimated payments. This safe harbor threshold is higher than the 90% rule that applies to most taxpayers.

If you had a particularly strong income year — perhaps from exercising stock options, selling a business interest, or realizing significant capital gains — your estimated payments may fall short. April 15 is your last chance to make a Q4 estimated payment for the prior year without additional penalties accruing.

Consider these adjustments:

• Annualization method — if your income was concentrated in certain quarters (common for athletes and executives with bonuses), you may be able to reduce penalties by demonstrating income timing through Form 2210
• Withholding acceleration — if you still receive W-2 income, increasing withholding in the current year can retroactively cover shortfalls because withholding is treated as paid evenly throughout the year
• State estimated payments — even in Florida (which has no state income tax), if you earned income in other states, you may owe state estimated taxes

Strategy 5: Health Savings Account Contributions

HSA Tax Strategies Available Until April 15

If you were enrolled in a high-deductible health plan (HDHP) during 2024, you can still contribute to your Health Savings Account until April 15 for the prior tax year. The 2024 limits are $4,150 for self-only coverage and $8,300 for family coverage, with an additional $1,000 catch-up contribution for those 55 and older.

For high-income earners, the HSA is often called the “triple tax advantage” — contributions are tax-deductible, growth is tax-free, and qualified withdrawals are tax-free. But the real power for affluent individuals is using the HSA as a stealth retirement account. If you can afford to pay medical expenses out of pocket now, your HSA grows tax-free indefinitely and can be withdrawn for any purpose (penalty-free) after age 65.

A $8,300 family contribution at the 37% bracket saves $3,071 in federal taxes alone. Combined with the NIIT savings on investment income, the effective benefit can exceed $3,385. This is one of the few remaining above-the-line deductions available to high earners with no income phase-out.

Strategy 6: Review Your Capital Gains and Loss Positioning

Tax-Loss Carryforward and Gain Offset Tax Strategies

While you can’t execute new trades to harvest losses for last year’s return (that window closed December 31), April is the ideal time to review your capital loss carryforward position and plan for the current year.

If your 2024 return shows significant realized capital gains — common for executives who exercised stock options or entrepreneurs who sold business interests — understanding your carryforward balance is essential. Capital losses carry forward indefinitely and offset gains dollar-for-dollar, with up to $3,000 of excess losses deductible against ordinary income annually.

For portfolios exceeding $1 million, a systematic tax-loss harvesting program can generate meaningful savings over time. In my experience working with clients, the difference between a passive buy-and-hold approach and an actively tax-managed portfolio can amount to 0.5% to 1.0% in annual after-tax return improvement — compounding significantly over a decade or more.

This is precisely the kind of ongoing coordination that distinguishes comprehensive wealth management services from basic brokerage or robo-advisor platforms. A holistic advisor integrates your investment management with tax planning in real time.

Strategy 7: Entity Structure and S-Corp Election Optimization

Late S-Corp Election as a Tax Strategy

For business owners earning substantial self-employment income, the S-Corp election can reduce self-employment taxes significantly. While the standard deadline to elect S-Corp status (Form 2553) is March 15 for the current tax year, the IRS provides late-election relief in many cases under Revenue Procedure 2013-30.

If you’re a high-earning consultant, physician, or professional athlete with an LLC that’s currently taxed as a sole proprietorship or partnership, converting to S-Corp taxation can save you the 15.3% self-employment tax on income above a reasonable salary. For someone earning $400,000 through an LLC, the savings from proper S-Corp structuring can exceed $20,000 annually.

This is an area where professional guidance is essential. Consult a qualified tax professional for your specific situation, as the IRS scrutinizes “reasonable compensation” and the entity structure must be appropriate for your business type.

Comparing Mass-Market vs. High-Net-Worth Tax Approaches

The following table illustrates why high-income earners need fundamentally different tax strategies than the general population:

Tax Planning Area	Mass-Market Approach	High-Net-Worth Approach
Retirement Contributions	Max out 401(k) at $23,000	Layer SEP-IRA, Solo 401(k) employer contributions, backdoor Roth, and mega backdoor Roth — potentially $69,000+
Charitable Giving	Donate and deduct if itemizing	Charitable bunching via DAF, QCD stacking, appreciated stock gifts, charitable remainder trusts
Capital Gains Management	Hold long-term for lower rate	Systematic tax-loss harvesting, gain deferral via opportunity zones, installment sales, charitable swaps of low-basis stock
Entity Structuring	Not applicable	S-Corp election, qualified business income (QBI) deduction optimization, family entity income splitting
Medicare/IRMAA Planning	Rarely a concern	Active AGI management to avoid $5,000+ annual surcharges per person

This comparison makes clear that the tax strategies relevant to someone with a $2 million portfolio and $600,000 in income are fundamentally different from those available at lower income levels. Working with an advisor who understands these distinctions isn’t a luxury — it’s a necessity.

Additional April Considerations for Complex Returns

IRMAA Planning and Roth Conversion Timing

For retirees and pre-retirees with significant investment portfolios, April tax planning should include a forward-looking review of IRMAA (Income-Related Monthly Adjustment Amount) exposure. Medicare premiums increase at specific income thresholds, and a single dollar over the line can cost you thousands in annual surcharges.

The 2024 IRMAA thresholds for Medicare Part B start at MAGI above $103,000 (single) and $206,000 (married filing jointly). At the highest tier (MAGI above $500,000 single / $750,000 joint), the monthly Part B surcharge reaches $395.60 per person — over $9,400 per year for a couple.

If your 2024 income was near a threshold, strategies like maximizing above-the-line deductions (HSA, SEP-IRA) or timing Roth conversions can keep you below the next tier. According to Fidelity’s Medicare planning resources, proactive IRMAA management is one of the most overlooked aspects of retirement income planning for affluent households.

Net Investment Income Tax Reduction

The 3.8% NIIT applies to the lesser of your net investment income or the amount by which your MAGI exceeds $200,000 (single) or $250,000 (joint). For high-income earners with substantial investment portfolios, this surtax can add up quickly.

While you can’t retroactively change your 2024 investment income, you can ensure your return is prepared to minimize NIIT exposure through:

• Proper allocation of investment expenses
• Maximizing above-the-line deductions to reduce MAGI
• Ensuring capital loss carryforwards are correctly applied
• Evaluating whether any investment income qualifies for the real estate professional exception

Frequently Asked Questions About Last-Minute Tax Strategies

Can I still contribute to a retirement account for 2024 in April?

Yes. Traditional and Roth IRA contributions can be made until April 15, 2025, for the 2024 tax year. SEP-IRA contributions can be made until your filing deadline, including extensions — potentially as late as October 15. Solo 401(k) employer contributions also follow the extended filing deadline, though employee deferrals must have been made by December 31, 2024.

Is filing a tax extension a bad idea for high-income earners?

Not at all. For complex returns involving K-1 income, multiple entities, or sophisticated planning, an extension is a standard and often recommended practice. It provides additional time for accurate reporting and opens the door to strategies like SEP-IRA funding. Just remember that any taxes owed must still be paid by April 15 to avoid penalties.

What are the best tax strategies to reduce IRMAA surcharges?

The most effective approaches include maximizing above-the-line deductions (HSA, retirement contributions), using QCDs instead of standard IRA withdrawals, timing Roth conversions to manage AGI, and harvesting capital losses to offset realized gains. These strategies require coordination with your overall financial plan, so consult a qualified financial professional for your specific situation.

How much can I save with an S-Corp election on self-employment income?

The savings depend on your total self-employment income and reasonable salary level. As a general example, a business owner earning $400,000 who pays themselves a $150,000 salary can potentially save the 15.3% self-employment tax (or the 2.9% Medicare portion above the Social Security wage base) on the remaining $250,000 in distributions — potentially $7,250 or more annually. Individual results vary significantly based on circumstances.

Do high-income earners in Florida still need tax strategies if there is no state income tax?

Absolutely. While Florida’s lack of state income tax is a significant advantage, federal taxes still apply at full force. High earners in Florida face the same 37% top federal bracket, 3.8% NIIT, IRMAA surcharges, and estate tax exposure as residents of any other state. Florida residency is one component of tax efficiency — not a substitute for comprehensive federal tax planning.

Taking Action on Your Tax Strategies Before the Deadline

The most costly mistake high-income earners make isn’t choosing the wrong investment. It’s failing to take action on tax strategies that are already available to them. The window for 2024 planning narrows every day, and several of the strategies outlined here — IRA contributions, HSA funding, estimated payment adjustments — expire on April 15 without exception.

If your financial life involves multiple income sources, concentrated equity positions, business ownership, or retirement assets exceeding $1 million, cookie-cutter tax preparation isn’t enough. You need integrated planning that coordinates your investments, tax positioning, and long-term wealth transfer goals.

Don’t let another filing season pass without maximizing every available strategy. To schedule a discovery conversation with our team in Stuart, Florida, reach out today — especially if you’re considering an extension and want to use the additional time wisely.

📥 Download our free Retirement Readiness Checklist to evaluate whether your current plan accounts for the tax strategies, income thresholds, and wealth-building opportunities discussed in this post. It’s designed specifically for high-net-worth individuals and takes just minutes to complete.

Ready for personalized guidance from a fee-only fiduciary? Schedule a complimentary review with Davies Wealth Management and discover how coordinated tax, investment, and retirement planning can protect and grow your wealth for the long term.

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This content is for educational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Advisory services offered through Davies Wealth Management, a Registered Investment Adviser. Please consult a qualified financial, tax, or legal professional regarding your specific situation.

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