End-of-Year Tax Planning

Ending the Year Strong

You may be able to reduce estimated tax payments to avoid giving interest-free loans to Uncle Sam and free up capital for your own business. My most frequent end of year customers earned large windfalls from inheritances, stock options, or real estate sales.

This planning allows you to weigh investment decisions, including additional capital expenditures in business, and charity and retirement contributions for next year.

End-of-Year Tax Checklist

You can use the following checklist to make sure your finances are in order before the end of the year. Click the button below to download or print it. Do you have questions or need input from a tax advisor? Book an appointment.

Income & Withholding

• Review year-to-date income from all sources (employment, business, investments, etc.)
• Verify employer has accurate W-4 withholding information
• Consider adjusting withholding if you had major life changes (marriage, new job, dependents)

Deductions & Credits

• Contribute to a Health Savings Account (HSA) if eligible
• Maximize contributions to retirement accounts (401(k), IRA, SEP IRA)
• Check eligibility for education-related credits (Lifetime Learning, American Opportunity)
• Track charitable donations with proper documentation
• Prepay deductible expenses where possible (e.g., property taxes, mortgage interest)

Investments & Capital Gains

• Review investment portfolio for end-of-year rebalancing
• Harvest tax losses to offset capital gains
• Consider timing the sale of appreciated assets (to manage capital gains exposure)

Business Owners & Self-Employed

• Defer income or accelerate expenses if it benefits your tax bracket
• Reconcile books and prepare profit/loss statements
• Ensure estimated taxes are up to date (especially Q4 payments
• Make final retirement plan contributions (Solo 401(k), SEP IRA, etc.)

Family & Life Events

• Update dependent information (births, custody changes, adult dependents
• Review eligibility for Child Tax Credit or Dependent Care Credit
• Ensure college tuition payments are properly documented

Final Steps Before Year-End

– Review changes in tax law for the current year

• Schedule a year-end review with your tax advisor or financial planner
• Gather receipts, income statements, and financial documents for tax prep
• Check your FSA balance – use it or lose it!
• Make any final charitable contributions by December 31