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With tax season in full swing, the Internal Revenue Service is implementing a service change to help Americans file their returns.
On March 6, the IRS announced it will extend weekly office hours at more than 200 Taxpayer Assistance Centers (TACs) nationwide, giving taxpayers additional time to receive in-person assistance during the filing season (1).
The agency noted that calendar-year filers, the most common type in the U.S., have until April 15 to file their returns, but the extended weekly schedule will remain available through April 30 (2). You can check if a center near you offers extended hours by using the IRS TAC Locator tool.
Additionally, many TACs are now open on select Saturdays to provide in-person assistance. During these special Saturday hours, visitors can receive assistance with most services offered at TACs, except making cash payments.
While many Americans file their taxes online, TACs still play an important role. According to the IRS Fact Book, the agency’s centers recorded more than 2 million contacts in fiscal year 2024, increasing in-person assistance provided to taxpayers by nearly 26% compared to the previous fiscal year (3).
The Trump administration has touted the possibility of “very large refunds” this tax season due to changes tied to the “One Big Beautiful Bill,” which introduced provisions such as tax deductions for tips, overtime pay, interest on auto loans and enhanced deductions for seniors.
And taxpayers are already taking advantage of those provisions. According to Frank Bisignano, the first executive director of the IRS, more than four in 10 of the approximately 55 million tax returns filed so far this season have claimed at least one of those new tax breaks (4).
That can make a noticeable difference: Bisignano said households that claim at least one of these deductions receive refunds that are $775 higher on average.
You can find the new IRS Schedule 1-A and its related instructions, which allow taxpayers to claim these new deductions, here.
While new deductions may ease the tax burden for earners, wealthy households generally don’t rely solely on policy changes to reduce their tax bills.
For decades, high-net-worth individuals have used proven strategies (and specific types of assets) to legally cut back on what they owe the IRS. According to a report by ProPublica, some billionaires in the United States paid little or no income taxes relative to the enormous fortunes they have amassed (5).
This is largely because billionaires build their wealth through assets, not salaries. As the value of these assets increases, your net worth grows, but the U.S. tax system is not designed to fully capture those gains. Capital gains are generally taxed at lower rates than regular income and no taxes are due until the assets are sold.
In fact, as New York University professor Scott Galloway once said, if you’re trying to build wealth, you have “an obligation to pay as little tax as possible” (6).
One asset class that America’s wealthy have relied on for decades is real estate, in part because of the generous tax treatment it receives.
When you earn rental income from an investment property, you can claim deductions for a wide range of expenses, such as mortgage interest, property taxes, insurance, and ongoing maintenance and repairs.
Real estate investors also benefit from depreciation, a tax deduction that recognizes the gradual wear and tear of a property over time. Investors can also use tools like refinancing and 1031 exchanges to keep their capital compounded rather than withdrawing it.
Nowadays, you don’t have to be a millionaire (or even buy a single property outright) to invest in real estate. Crowdfunding platforms like Arrived offer an easier way to gain exposure to this income-generating asset class.
Backed by world-class investors like Jeff Bezos, Arrived lets you invest in rental home stocks with as little as $100, all without the hassle of mowing the lawn, fixing leaky faucets, or dealing with difficult tenants.
The process is simple: browse a select selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you would like to purchase and then sit back as you begin receiving positive rental income distributions from your investment.
Another option is Lightstone DIRECT, which offers accredited investors access to institutional-quality multifamily and industrial real estate, with a minimum investment of $100,000.
Founded in 1986 by David Lichtenstein, Lightstone Group is one of the largest private real estate investment firms in the United States, with more than $12 billion in assets under management.
For nearly four decades, his team has delivered strong, risk-adjusted performance across multiple market cycles, including a historical net IRR of 27.6% and a historical net equity multiple of 2.54 times on investments made since 2004.
With Lightstone DIRECT, you gain access to the same multifamily and industrial businesses that Lightstone pursues with its own capital.
Here’s the kicker: Lightstone invests at least 20% of its own capital in each deal, about four times the industry average. With skin in the game, the company ensures that its interests are directly aligned with those of its investors.
Read more: I’m almost 50 years old and I have no retirement savings. Is it too late to catch up?
Read more: Non-millionaires can now invest in this billion-dollar private real estate fund from just $10
The rich don’t just focus on what they invest in: they also pay close attention to where those investments are located. Using tax-advantaged retirement accounts can be a powerful way to maintain greater compounding over time.
For example, traditional IRAs and Roth IRAs allow investments to grow tax-deferred or tax-free, depending on the type of account.
While many retirement accounts primarily contain stocks and mutual funds, some investors choose to diversify further. Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, has repeatedly warned that many portfolios lack a key safe-haven asset: gold.
“People typically don’t have an adequate amount of gold in their portfolio,” he told CNBC last year. “When bad times hit, gold is a very effective diversifier.”
Long considered the ultimate safe haven, gold is not tied to any particular country, currency or economy. It cannot be created at will by central banks like fiat money and in times of economic turbulence, market turbulence or geopolitical uncertainty, investors tend to accumulate, increasing its value.
In the last 12 months, gold prices have risen more than 70%.
One way to invest in gold that also offers significant tax advantages is to open a gold IRA with the help of Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially protect their retirement funds against economic uncertainties.
For more information, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
After all, everyone’s financial situation is different – from income levels and investment goals to debt obligations and risk tolerance. If you’re not sure where to start, now might be the right time to contact a financial advisor.
With Vanguard, you can connect with a personal advisor who can help you evaluate your performance so far and ensure you have the right portfolio to reach your goals on time.
Vanguard’s hybrid advisory system combines advice from professional advisors and automated portfolio management to ensure your investments work to achieve your financial goals.
All you have to do is fill out a short questionnaire about your financial goals and Vanguard advisors will help you establish a personalized plan and stick to it.
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