I’m a Tax Expert: 9 End-of-Year Tax Moves You Should Make Before Dec. 31
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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The final weeks of the year offer some of the most valuable opportunities to lower your upcoming tax bill, but only if you act before Dec. 31. With new provisions taking effect in 2025, higher living costs and changing income patterns, now is the time to make smart, strategic tax moves that can save you money both this year and next. Lisa Greene-Lewis, tax expert and spokesperson at TurboTax, offered nine steps to take now.
1. Adjust Your Withholding
If your income has changed this year or will change in December, “this is a good time to adjust your withholding,” Greene-Lewis said. Updating your withholding is one of the fastest ways to correct underpayment or increase take-home pay before 2026 kicks in.
You can use free W-4 tax calculators to estimate your withholding whether you want a bigger paycheck or to lower the amount you owe.
2. Max Out Retirement Contributions
Year-end retirement contributions reduce taxable income immediately and may earn additional credits. “The single most underrated is contributing to your 401(k) especially if you have an employer that matches your contribution,” Greene-Lewis said.
Your 401(k) deadline is Dec. 31, and many taxpayers miss out on deductions and saver’s credit eligibility by waiting until tax season.
“For tax year 2025 you can contribute up to $23,500 ($31,000 for those ages 50+ and $34,750 for those ages 60 to 63) and lower your taxable income,” she pointed out.
3. Harvest Investment Losses To Offset Capital Gains
If you lost money in stocks or cryptocurrency this year, selling before Dec. 31 can offset gains and reduce taxable income. “You can offset [a] loss up to $3,000 against income-like wages,” Greene-Lewis said.
4. Accelerate or Defer Income To Stay in a Lower Tax Bracket
Strategic timing of income can help keep you below a bracket threshold. This can mean negotiating when you receive end-of-year bonuses, freelance payments or rental income.
“If you received additional or more income than you were expecting that bumps you up into a higher tax bracket you can defer any income into next year,” Greene-Lewis said. December is the last month to shift income to avoid pushing next year’s tax bill higher.
5. Boost Your Charitable Deductions
If you’re charitably minded, donating before year’s end can provide valuable deductions for those who itemize. Cash, non-cash goods and gifts to donor-advised funds all qualify.
“Donor advised funds allow you to contribute cash, stock or other assets to get an immediate tax benefit in the year of funding,” Greene-Lewis said. Be sure to obtain proper acknowledgements for gifts of $250 or more.
6. Use Your FSA Funds and Boost Your HSA
Flexible spending accounts (FSAs) are use-it-or-lose-it, making Dec. 31 the deadline for eligible spending. “So if you were considering a medical expense … now is a good time to make your appointment before Dec. 31,” Greene-Lewis said.
Health savings accounts (HSAs) allow larger contributions — up to $4,300 for individuals and $8,550 for families in 2025 — and can be funded until the April deadline but planning now ensures you maximize deductions.
7. Claim Family-Related Credits
Families often forget key steps that unlock major tax benefits, Greene-Lewis pointed out. If you had a new child this year, filing for their Social Security number is essential. Multiple credits, including the child tax credit and the dependent care credit, are tied to December eligibility for children under age 17.
8. Take Advantage of 2025 Tax Law Changes Before They Phase Out
The One Big Beautiful Bill Act introduced expanded deductions for tips, overtime, auto loans, people 65 and over and a new state and local tax (SALT) cap, which increased from $10,000 to $40,000, Greene-Lewis noted. “All of these new provisions are based on different income thresholds and phase out when your income gets over a certain amount.”
Some deductions and credits disappear after Dec. 31, so taxpayers must make qualifying purchases or installations now.
9. Clean Up Your Books If You’re Self-Employed
Small-business owners face multiple year-end tasks that can significantly reduce their tax bills. Greene-Lewis recommended reviewing and reconciling your financial books before Dec. 31.
She said to do the following:
- Reconcile your bank and credit card accounts.
- Make adjustments for incorrect or stale items.
- Separate business and personal expenses.
- Organize your chart of accounts.
- Gather your business receipts.
- Verify your inventory if you have any.
- Account for payments to contractors and employees.
- Close your books so you are ready for tax time.
This move “is essential for a more precise idea of your company’s financial situation and an accurate tax return,” she said.
Taking a few intentional steps before Dec. 31 can help you start 2026 with lower taxes, cleaner finances and far fewer surprises when it’s time to file.
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