September 30, 2025

Year-End Tax Planning: Kick Off the Season with Key Deadlines and Smart Strategies

As the year draws to a close, it’s a great opportunity to review your finances, take advantage of available tax benefits, and set yourself up for a smoother tax season. Below, you’ll find important deadlines and practical strategies you can use before December 31 to help optimize your 2025 tax return and avoid last-minute surprises. (All guidance here is intended for general informational purposes and should not be considered specific tax, legal, or investment advice. Please consult a qualified tax professional regarding your unique situation.)

Important Tax Deadlines

January 15, 2025: Final estimated tax payment for 2024 (for self-employed, gig workers, and side businesses).
January 27, 2025: IRS opens for 2024 e-filed returns.
March 15, 2025: Partnership and S-corporation tax filing or extension deadline.
April 15, 2025: Federal individual return deadline and last day to contribute to most IRAs and HSAs for the 2024 tax year. This is also the deadline for requesting a six-month extension.
June 16 & September 15, 2025: Quarterly estimated tax payments due for 2025.
October 15, 2025: Final extended deadline for filing 2024 returns.

Key Year-End Strategies

1. Max Out Tax-Advantaged Accounts
Consider making contributions to IRAs, 401(k)s, and HSAs. For 401(k)s in 2025, the contribution limit is $23,500 ($31,000 if you’re age 50 or older). Contributing as early as possible helps your money grow with tax advantages over time.

2. Tax-Loss Harvesting
Review your investment portfolio and, if appropriate, consider selling investments at a loss to offset capital gains. You can use up to $3,000 of net capital losses to reduce ordinary income. This strategy can be particularly helpful in volatile market years. (Remember, tax-loss harvesting rules can be complex—consult a tax advisor before making changes.)

3. Bunching Deductions
If you’re close to the standard deduction threshold, consider grouping (“bunching”) charitable donations or medical expenses into a single year. This may allow you to itemize deductions one year and take the standard deduction the next, potentially increasing your tax benefits. (Always keep detailed records and check with a tax professional for eligibility.)

4. Review Gifting, RMDs, and QCDs
You can generally give up to $19,000 per recipient this year without triggering federal gift tax. If you’re over age 70½, you may be able to make Qualified Charitable Distributions (QCDs) directly from your IRA to satisfy required minimum distributions (RMDs) and potentially reduce taxable income. (Consult with your advisor to ensure these actions fit your personal and tax circumstances.)

5. Self-Employed & Small Businesses
Take advantage of all deductions available to you, such as those for home office expenses, equipment purchases, retirement plan contributions, business insurance, and bonus depreciation. If eligible, plan for the Qualified Business Income (QBI) deduction. (Tax rules for small businesses can be complex, so professional guidance is recommended.)

6. Stay Informed on Law Changes
Stay up to date on changes to tax laws, credits, and deductions that could impact your 2025 plans and returns. If you have questions about how new rules may affect you, reach out to a qualified tax professional for guidance.

Disclosure

This article is intended solely for educational and informational purposes and should not be construed as personalized investment, tax, or legal advice. The information provided herein is based on sources believed to be reliable and current as of the publication date but is not guaranteed for accuracy or completeness. Tax laws, IRS guidance, and filing deadlines are subject to change, and the information presented may not apply to all taxpayers or situations.

Neither the author nor the publisher provides tax, legal, accounting, or investment advisory services. The strategies outlined may not be suitable for all individuals or businesses, and actual results may differ from those described. Before taking any tax-planning or financial action, consult with a qualified tax professional or CPA who can take into account your specific circumstances, risk tolerance, and evolving federal and state law. The mention of any specific strategy or financial product does not constitute a recommendation or endorsement.

Investing and tax decisions involve risk, including the possible loss of principal, and may have significant legal, accounting, or investment consequences. No warranty is made as to outcomes or future results. The author and publisher disclaim any liability for actions taken in reliance on this information.

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Year-End Tax Planning: Kick Off the Season with Key Deadlines and Smart Strategies

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