As the year winds down, it’s easy to shift your focus to the holidays and hit pause on your finances — but the final weeks of the year are a powerful window of opportunity when it comes to lowering your tax bill and strengthening your financial position.
Here are six strategic year-end tax moves that could save you money when you file — and help you avoid surprises come tax season:
1. Prepay Deductible Expenses
If you’re a homeowner, business owner, or self-employed, consider prepaying things like mortgage interest, rent, utilities, or insurance premiums before December 31. These payments may be deductible this year — and could tip you into a better tax position.
2. Max Out Retirement Contributions
Still haven’t hit your 401(k) or IRA limits for the year? There’s still time. Contributions made before December 31, 2025 may reduce your taxable income for the year. For 2025, the 401(k) contribution limit is $23,500 (plus $7,500 if you’re age 50 or older). Traditional IRA contributions remain capped at $7,500 (plus $1,000 catch-up), and may be deductible depending on your income and filing status.
3. Harvest Investment Losses
If you have investments that have lost value, you may be able to sell them to offset capital gains — a strategy known as “tax-loss harvesting.” You can use up to $3,000 of losses to reduce your ordinary income, and carry forward unused losses to future years.
4. Make Charitable Donations
Giving isn’t just good for the community — it can be good for your tax return. Donating to qualified 501(c)(3) organizations before December 31 can give you a deduction if you itemize. Don’t forget to get proper documentation!
5. Organize Your Books & Receipts
This one may not save you money right now, but it can prevent missed deductions later. Whether you’re an individual with freelance income or a small business owner, organizing now makes tax filing faster, easier, and more accurate.
6. Schedule a Year-End Tax Review
Tax law changes like The One Big Beautiful Bill (OBBBA) mean that 2025 will bring new credits, phaseouts, and rules. A quick review with a tax professional now can help you make smart moves before the clock runs out.
☀️ Ready to Get Ahead of Tax Season?
At Sunshine Tax Relief, we offer year-end reviews, tax planning, and resolution services for individuals and businesses across the country. We’ll help you reduce your risk, maximize your refund, and start the new year with clarity and peace of mind.
📞 Call us at (352) 701‑1189
🌐 Schedule a consultation: www.sunshinetaxrelief.com/contact
Say goodnight to tax problems — and make this year count.
