Four Takeaways From Filing Your Taxes to Boost Your Financial Future
Now that another tax season is in the rearview mirror for most of us, what lessons can you take from what you learned about your finances to plan for the future?
Spring is finally here: Each year, as the weather improves and the flowers bloom, tax season arrives in tandem. Now that most of us have crossed our 2025 taxes off our to-do lists, we can focus on what we learned about our finances and put that knowledge to work on our future.
One place to start: tapping into your workplace benefits. The workplace is an often-overlooked resource when it comes to financial planning — from income and investing opportunities to personalized financial guidance.
Here are four ways to help you use your workplace benefits to stay ahead of the game and prepare for next year’s tax season:
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1. Review workplace benefits contributions and educational resources
Investments you make through employer-sponsored benefits, such as a retirement plan, equity compensation, health savings accounts (HSAs) and more, can potentially have an impact on your taxes.
For example, 401(k) contributions are typically made with pre-tax money, which reduces your annual income and tax liability for the year and can grow without being taxed until the funds are withdrawn.
However, if you have a Roth 401(k) or Roth IRA, you’ll pay taxes for that year when you make contributions, but then your potential investment growth and withdrawals will be tax-free in retirement, if certain conditions are met.
And if you’re looking to give back, employers are increasingly offering benefits focused on charitable giving with options like a donor-advised fund (DAF), which may also qualify for certain types of tax deductions.
A growing area of confusion is equity-based compensation, especially when it is received for the first time. The first step is knowing what kind of equity compensation you receive — common types include stock options, restricted stock units (RSUs) and employee stock purchase plans (ESPPs).
Understanding how equity compensation impacts your taxes is an important step in using that equity to help meet your financial goals. If you don’t know where to start, reach out to your employer and equity compensation provider, who may be able to connect you with equity professionals to help you find more information.
Your employer can also likely offer educational resources such as webinars, articles and more to help you understand tax strategies like tax-loss harvesting, charitable giving and non-qualified deferred compensation.
2. Create a game plan if you are receiving a refund
According to IRS statistics through April 4, tax filers this year are receiving on average a 3.5% increase in their refund. If you receive a refund — the average amount is $3,116 — it’s important to create a plan for how you’ll spend it.
While splurging on a vacation or a wish list item can be rewarding (and well-deserved), you may want to consider how your tax return can support your long-term financial well-being, too.
No matter how distant your long-term goals seem, it’s important to invest in your financial future. Are you setting aside money for college? What age would you ideally like to retire? Are you hoping to start or grow your family this year?
By setting clear goals and creating a realistic road map toward reaching them, you’ll be better equipped to make informed decisions about your finances. The sooner you invest, the more you’ll potentially be able to build in your nest egg by the time you retire.
Also, keep in mind that life is unpredictable, so consider setting aside some of your return in an emergency fund such as a high-yield savings account, money market account or CD.
Ideally, you should have somewhere between three and six months of living expenses ready in case of unforeseen circumstances.
3. Build personal financial goals
It’s never too early to prepare for next year, or even 20 years from now. Ongoing financial planning can help you work toward financial goals, create wiggle room in your budget and increase savings in the long term.
Customize your participation in workplace benefits to align with where you are today in your financial journey. Review your contributions to retirement accounts — if your employer matches contributions, consider increasing your contribution to the amount necessary to receive the full match.
Also, if you have company stock or retirement investments, you may want to keep track of your overall asset allocation, performance and any realized profits or losses.
Your workplace likely offers financial wellness benefits or a program with resources that can help guide you down the right path toward achieving your long-term financial goals.
Our research shows that nearly 9 in 10 HR leaders offer financial wellness programs to help counterbalance work-life stressors.
Oftentimes, this includes benefits such as emergency savings vehicles, tuition reimbursement, HSAs, flexible spending accounts (FSAs) and more.
4. Reach out for support
If you aren’t sure where to start, talk to your employer — they can help provide information to help you understand your tax elections, take advantage of workplace benefits and direct you toward resources that can help you navigate your financial life.
For more nuanced questions, or for help understanding the tax implications of your workplace benefits, remember that many employers may offer access to personalized financial guidance, such as self-guided financial education, a financial coach or advisor who can answer questions and provide deeper support.
At the end of the day, taking the time to understand how your workplace benefits and taxes fit into your wider financial life can allow you to focus on what matters to you most.
This material has been prepared for informational purposes only. It does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Morgan Stanley Smith Barney LLC (“Morgan Stanley”) recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Morgan Stanley Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
Employee stock plan solutions are offered by E*TRADE Financial Corporate Services, Inc., Solium Capital LLC, Solium Plan Managers LLC and Morgan Stanley Smith Barney LLC (“MSSB”), which are part of Morgan Stanley at Work. Morgan Stanley at Work services and stock plan accounts are provided by wholly owned subsidiaries of Morgan Stanley. Morgan Stanley at Work stock plan accounts were previously referred to as Shareworks, StockPlan Connect or E*TRADE stock plan accounts, as applicable. In connection with stock plan solutions offered by Morgan Stanley at Work, securities products and services are offered by MSSB, Member SIPC. E*TRADE from Morgan Stanley is a registered trademark of MSSB.
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