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Great question! Right now IS tax planning season.📅. We are meeting with clients and prospective clients every day, working to rearrange budgets shifting funds from 2025 estimate #4 💸 into tax-advantaged investments 💰.

While there are no quick answers — and we always say “it depends” 🤷‍♀️ and “it’s not quick or easy” — there may still be opportunities out there for you. ✨ The key is to review your situation now, before the year closes ⏰, to make sure you’ve done everything possible to minimize taxes and strengthen your financial position heading into 2026. 📊

Year-end tax planning feels like the last quarter of your financial game. 🏈 It’s not just about racing for deductions: it’s about timing, strategy, and choices that’ll carry you into next year stronger.

Not ready to make a full commitment yet, keep reading for some general information that might help, but act before December 31st.

1️⃣ Max Out Retirement Contributions

I know, you’ve heard it before. But seriously, if you haven’t maxed out your retirement contributions yet, now’s the time.

Why? Because those contributions cut down your taxable income while growing your future wealth. That’s a win on both ends.

Here’s what 2025 looks like:
✅ 401(k): Up to $23,000 (plus a $7,500 catch-up if you’re 50+).
✅ IRA: Up to $6,500 (or $7,500 if you’re 50+).
✅ SEP IRA or Solo 401(k): Great for freelancers and small business owners; contributions can reach 25% of net earnings.

💡 Even if you can’t hit the max, put in what you can. Each dollar counts and grows with time. 📈🌱

2️⃣ Harvest Those Losses (Strategically) 

Got losing investments sitting around? Don’t panic, they might still work in your favor.

Tax-loss harvesting means selling investments that dropped in value to offset gains elsewhere. You can even use up to $3,000 in net losses to reduce your regular income.

Here’s what to do:
💬 Review your positions with your advisor before the year ends.
📊 Reinvest in ways that still fit your goals.
⚠️ Avoid the “wash sale” trap, don’t buy the same stock within 30 days.

This move may turn those investment lemons 🍋 into something that actually reduces your tax bill.

3️⃣ Give Generously (and Smartly) 

Charitable giving isn’t only good for your heart, it may be good for your taxes.

Under the One Big Beautiful Bill Act (OBBBA), deductions for charitable giving are still available. You can:
✅ Deduct cash gifts up to 60% of your AGI.
✅ Donate appreciated stock or crypto to dodge capital gains and still deduct.
✅ Stack donations in a Donor-Advised Fund (DAF) to maximize this year’s deduction while planning.

Even if you don’t itemize, you may still qualify for an above-the-line deduction for smaller gifts.

💡 Want bonus points? Track your donations throughout the year, save receipts to make tax season easier.

4️⃣ Review Business Expenses (and Prepay What You Can)

If you run a business or freelance, it’s time to clean up your books and prepay expenses where it makes sense.

Think:
💻 Software subscriptions
🏢 Office rent or utilities
🚗 Car upkeep or mileage
👩‍💻 Professional fees or training

If you use the cash accounting method, these prepaid expenses might lower this year’s taxable income.

You may also benefit from deductions for: home office costs, memberships, or even AI tools that boost your workflow 🤖✨).

5️⃣ Use the tax law to Your Advantage

These are still available under OBBBA, for now, but expiring fast, please make sure you understand all the requirements.

If you invested in energy-efficient equipment, hired under new job credits, or bought digital compliance tools, you might qualify for credits this year.

That includes:
🌱 Clean energy investment credits
📊 AI adoption incentives for small businesses
💸 Simplified R&D credits (even for non-tech companies)

I’ve seen clients save just by checking the fine print. Don’t skip this, it’s one of the most powerful changes to tax planning in years.

6️⃣ Check Your Estimated Taxes & Withholding

One move that saves a ton of stress in April, double-check your estimated tax payments before the year ends.

If your income changed, maybe your side gig took off or your partner switched jobs, your withholding could be off balance.

✅ Use your latest pay stub or bookkeeping dashboard.
✅ Match year-to-date withholding with your expected bill.
✅ Adjust your final quarter payment or file a new W-4 if needed.

Avoiding that penalty later? That’s one of those small but satisfying wins. 🥳

7️⃣ Don’t Forget HSAs & FSAs

Got a Health Savings Account or Flexible Spending Account? Don’t let that money vanish.

✅ HSAs: Contribute up to $4,150 (individual) or $8,300 (family). Contributions are triple tax-advantaged: deductible now, grow tax-free, and spendable tax-free for health costs.
✅ FSAs: Use your funds before they expire or check if you get a small rollover.

So many people forget and lose that cash. Don’t be one of them. 💸🚫

8️⃣ Review Entity Structure & Compensation Strategy

If your business shifted this year, it’s smart to review your entity and pay structure.

S-Corp or LLC? Salary or distributions? These choices shape your tax outcome. You have flexibility with pass-through income and stock-based compensation.

💡Hint: Now’s the right time to project numbers. You might save next year by electing S-Corp status or tweaking compensation before 2026.

9️⃣ Schedule a Year-End Strategy Session

You don’t need to do all this alone. The best results come when you plan with your strategic team which should consist of your CPA, financial advisor, and attorney.

We use tools that model different tax outcomes and then hold a “show and tell” meeting 🕰️🤖 let’s choose the results that work for you and your business.

This isn’t just about cutting taxes; it’s about clarity and control.

✨ Final Thoughts:

Tax planning isn’t just about dodging pain; it’s about creating opportunity. Reducing taxable income, optimizing investments, or aligning your goals under the OBBBA can all lead to one thing: better control before the year ends. 🎆

 🚀Seems like this is another call to action, no wishful thinking, let’s not say “I wish I had…”,  and as always

Feel free to search our website for some of our complementary resources or get in touch:  Contact us if you have tax concerns, tax minimization questions or want to discuss the next steps for your business success and financial goals.  Use our search box for those posts specific to tax minimization, business planning, business best practices, casualty losses, etc. and see what “pop’s” up. . Here’s a link to other blog posts.