-NEVER TO LATE FOR TAX MOVES-

Six Smart Last-Minute Tax Moves Before Year-End

As we start November, and begin to get wrapped up in the holidays. It is a great time to look at taking a few proactive steps that can help you reduce your tax bill, strengthen your financial position, and position you to start the new year with confidence.

1. Maximize Retirement Contributions

If you have 401(k) through work, contributing before year-end can directly lower your taxable income. For tax year 2025, you can contribute up to $23,000, and if you’re 50 or older you can take an extra $7,500.

Do not have a 401(k)? No worries, you can still contribute to an IRA (traditional or Roth)—and you’ll have until the tax filing deadline April 15, 2026 to do so. However, remember that only contributions to a traditional IRA will provide a tax effect for 2025.

2. Maximize Investment Losses

If your investment portfolio includes some underperforming stocks, selling them before year-end can help offset gains. Known as tax-loss harvesting, this strategy can balance your taxable gains or reduce up to $3,000 of ordinary income.

3. Give Back & Get Deductions

Charitable donations may be deductible if you itemize, and you have until December 31^st to donate. You can give cash, household items, or even appreciated stock. For business owners, consider end-of-year community sponsorships or donations that align with your company’s values; these may also offer a deduction.

4. Expense Wisely

You may be able to lower your taxable income by paying certain deductible expenses before year-end. That might include property taxes, mortgage interest, or business expenses like equipment purchases. If you’re self-employed, purchasing tools, supplies, or software before December 31^st  can reduce your current-year tax liability.

5. Review Withholding and Estimated Taxes

Check your year-to-date withholdings or quarterly estimated payments to ensure you’re on track. Adjusting now can help you avoid penalties and prevent surprises at tax filing time.

6. Don’t Forget Your Flexible Spending Accounts (FSAs)

If you have a health or dependent care FSA, check your balance—many plans require you to use funds by year-end or forfeit them. Use it for eligible expenses like medical visits, prescriptions, or childcare. Remember, under certain Dependent Care FSAs (DCFSAs) unused funds could be taxable.

Strong Finish for a Better Start

A few smart tax moves before end of the year can make a real difference come time to file your taxes. Whether you’re an individual taxpayer or a small business owner, now is the perfect time to get organized, optimize deductions, and plan ahead.