It’s Not Too Late: 9 Tax Moves to Make Before December 31

If you think it is too late to positively affect your 2026 taxes bill, you are wrong.

There are still some practical steps you can take before December 31.

The important thing to remember is that many tax-saving opportunities are based on what you do before the end of the calendar year. Once December 31 passes, some opportunities are gone.

Here are a few year-end strategies worth reviewing.

1. Increase Your 401(k) Contribution

If you have a traditional 401(k), 403(b), or similar employer retirement plan, consider increasing your contribution before your final paycheck of 2026.

Pre-tax contributions can reduce your taxable wages for the year.

2. Fund an HSA

If you are eligible for a Health Savings Account, check how much you have contributed for 2026. An HSA can provide a tax deduction for eligible contributions while also offering tax advantages for qualified medical expenses.

3. Review Investment Gains and Losses

If you sold investments during 2026 and have capital gains, review your portfolio for investments that have declined in value. Selling an investment at a loss before year-end may allow you to offset capital gains and potentially reduce your overall tax liability.

Don't make an investment decision solely for the tax benefit, but it is worth reviewing before December 31.

4. Make Planned Charitable Contributions

If charitable giving is part of your financial plan, consider making qualifying donations before December 31. Keep your receipts and other documentation. For larger or non-cash contributions, additional documentation and rules may apply.

5. Business Owners: Review Year-End Expenses

If you own a business or even a side-hustle, review your expected 2026 income and outstanding business expenses.

If you have legitimate business expenses that you already need—such as equipment, supplies, software, advertising, or professional services—completing the purchase before year-end may allow the expense to be considered for your 2026 return.

Don't spend money simply to get a tax deduction. Spending $1 to save a fraction of that dollar in taxes isn't a tax savings strategy.

6. Consider Business Retirement Contributions

Business owners should review whether a SEP IRA, Solo 401(k), or other retirement plan could provide a tax benefit. Because the rules and deadlines vary depending on the type of business and retirement plan, this is something to discuss before taking action.

7. Review Your Tax Withholding

Got a raise or changed jobs! If your income changed significantly during 2026, check your federal and state withholding. A year-end review can help determine whether your withholding is on track or whether you should make adjustments going forward.

8. Make Sure You Are Taking Advantage of Available Tax Benefits

Review major changes that occurred during 2026, such as:

• Marriage or divorce

• Birth or adoption of a child

• Retirement

• Starting or selling a business

• Buying or selling a home

• Major investment gains or losses

• Significant changes in income

• College or education expenses

• Tips or overtime

  
  

These changes can affect deductions, credits, withholding, and other aspects of your tax return.

9. Run a Quick Year-End Tax Projection

One of the most useful things you can do before December 31 is estimate your 2026 taxable income and tax liability.

You don't need to wait until all your tax documents arrive in January.

Using your current income, withholding, retirement contributions, investment activity, and other major tax items, you can get a reasonable idea of where you may end up.

That information can help you decide whether there are any year-end moves worth making. Tax professionals are always willing to help provide you with a tax projection.

The Bottom Line

There isn't one tax-saving strategy that works for everyone.

The best year-end strategy depends on your income, tax bracket, investments, retirement savings, business activity, and personal situation. But the strategy of waiting until January to start thinking about your 2026 taxes is the wrong strategy.

Before December 31, take a few minutes to review your numbers and ask:

“Is there anything I can still do this year that could legally reduce my 2026 tax bill?”

That question alone could be worth asking before the calendar turns to 2027.

As always, remember:

“BEST WAY TO PLAN FOR TOMORROW IS TO GATHER AS MUCH INFORMATION AS YOU CAN TONDAY!”