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Individual Year-End Tax Checklist: Smart Year-End Steps to Save


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As the year comes to a close, it’s a great time to get proactive about your personal tax planning. A few smart steps before December 31 can help reduce your tax bill, boost your savings, and keep you financially organized heading into the new year.


Here’s your Individual Year-End Tax Checklist to help you make the most of available deductions and credits before they expire.


1. Max Out Retirement Contributions

One of the most effective ways to lower taxable income is by contributing to your retirement accounts before year-end.

  • 401(k): Contribute up to $23,000 for 2025 ($30,500 if age 50+).

  • Traditional IRA: Up to $7,000 ($8,000 if 50+), subject to income limits.

  • Roth IRA: Same contribution limits, but check eligibility based on income.

Tip: If your income exceeds Roth limits, ask your CPA about the Backdoor Roth IRA strategy to build tax-free retirement savings.


2. Contribute to Your Health Savings Account (HSA)

If you have a high-deductible health plan, an HSA is one of the most tax-efficient tools available.

  • Contributions are tax-deductible, the balance grows tax-free, and withdrawals for qualified medical expenses are tax-free — a true triple tax benefit.

  • 2025 limits: up to $4,300 for self-only coverage and $8,550 for family coverage. If you’re age 55 or older, you can contribute an extra $1,000.

Tip: Don’t forget to invest your HSA funds for long-term growth — not just keep them in cash.


3. Harvest Capital Losses (or Gains)

If you have investments in taxable accounts, review your portfolio for capital gain and loss opportunities:

  • Sell losing investments to offset capital gains from winners (up to $3,000 can offset ordinary income).

  • Rebalance your portfolio strategically to minimize future taxable events.

Tip: Avoid the wash sale rule — don’t repurchase the same or a substantially identical investment within 30 days of selling.


4. Review Charitable Giving Opportunities

Donations made by December 31 can reduce your taxable income if you itemize deductions.

  • Consider donor-advised funds for larger or planned giving.

  • Donate appreciated stock instead of cash to avoid capital gains tax.

Example: Donating $10,000 in appreciated stock you’ve held for over a year lets you deduct the full value and avoid paying tax on the gain.


5. Check Withholding and Estimated Tax Payments

Avoid surprises at tax time by making sure you’ve paid enough tax throughout the year.

  • Review your W-2 withholding or estimated tax payments.

  • Adjust before December 31 if you’re underpaid to avoid penalties.

Tip: If you received significant non-wage income (such as investment gains, rental income, or bonuses), check in with your CPA to confirm you’re on track.


Action Items for Individuals

  1. Max out retirement plan contributions (401(k), IRA, or Roth IRA).

  2. Contribute to your HSA for 2025 and invest the balance.

  3. Review your portfolio for tax-loss harvesting opportunities.

  4. Complete all charitable giving before December 31.

  5. Verify withholding and estimated payments are accurate.

  6. Schedule your year-end tax review with your CPA to uncover additional tax-saving opportunities.





Schedule a one-on-one year-end planning session with our CPA. We’ll review your income, investment activity, and retirement strategy to ensure you capture every deduction and end 2025 in the strongest possible tax position.

Book a free discovery call with our CPA here.






 
 
 

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