Here’s a truth most people learn too late: by the time you sit down to file in the spring, most of your tax bill is already locked in. The decisions that actually move the number happen before December 31. A few worth reviewing every year:
1. Max out tax-advantaged accounts
Contributions to retirement accounts and HSAs can lower your taxable income. Some have year-end deadlines; others (like IRAs) run to the filing deadline — but it’s easier to plan now than scramble later.
2. Time income and deductions
If you have control over when income lands or a deductible expense is paid — common for business owners and the self-employed — shifting it across the year-end line can change which year (and rate) it falls in.
3. Harvest investment losses
Selling investments at a loss can offset gains and a limited amount of ordinary income. Watch the wash-sale rules, and coordinate with whoever manages your investments.
4. Make your charitable giving count
Bunching several years of giving into one year, or donating appreciated assets instead of cash, can make the same generosity more tax-efficient.
5. Check your withholding and estimates
A quick projection now tells you whether you’re headed for a surprise — and gives you time to fix it before penalties apply.
6. Revisit your business structure
If your income has grown, the entity you chose years ago may no longer be the most efficient. Year-end is a natural time to ask the question.
None of these are one-size-fits-all — the right move depends on your full picture. That’s exactly the kind of forward-looking review we do with clients.
This article is general information, not tax advice. Talk to a professional about your specific situation.