Year-End Tax Moves: What You Can Still Do Right Now
It's January, which means you're probably thinking about taxes. The good news? There are still several smart tax moves you can make right now that will lower your 2025 tax bill.
Even better, understanding these opportunities now sets you up to be even more strategic throughout 2026.
What You Can Still Do for Your 2025 Taxes
IRA contributions: You have until April 15, 2026 to make your 2025 IRA contribution. That's $7,000, or $8,000 if you're 50 or older. This is one of the easiest ways to reduce your 2025 tax bill if you still have room under the income limits.
HSA contributions: Same deadline. If you had a high-deductible health plan in 2025, you can contribute up to $4,300 (individual) or $8,550 (family) until April 15, 2026. HSAs are triple tax-advantaged, making them one of the best savings vehicles available.
Review your withholding for 2026: Look at your 2025 tax situation. Are you getting a massive refund? You're essentially giving the government an interest-free loan. Owing a large amount? You might face penalties. Adjust your W-4 now so your 2026 withholding is dialed in correctly.
Make estimated tax payments: If you're self-employed or have significant investment income, your first 2026 estimated payment is due April 15. Getting ahead of this prevents a painful catch-up later.
Building a Year-Round Tax Strategy
Here's the real insight: the people who consistently seek to minimize their taxes aren't just more careful during tax season. They think about taxes throughout the entire year.
Tax planning should be proactive, not reactive. That means looking ahead at opportunities you can take advantage of before December 31, 2026 rolls around.
Key opportunities to plan for during 2026:
Tax-loss harvesting: This means strategically selling investments that have lost value to offset gains elsewhere in your portfolio. Your financial advisor can monitor this throughout the year and act when opportunities arise, not just in a December scramble.
Roth conversions: If you have a year with lower income—maybe you're between jobs, took time off, or retired early—converting traditional IRA money to Roth can make a lot of sense. But you need to model it carefully with tax projections, not guess.
Charitable giving strategies: If you're charitably inclined, donating appreciated stock instead of cash lets you avoid capital gains tax while still getting the deduction. Or consider a donor-advised fund that gives you the tax benefit now while lets you distribute to charities over time.
Retirement account contributions: Planning to max out your 401(k)? Don't wait until December to figure out if you're on track. Front-loading contributions or at least checking mid-year ensures you're not leaving money on the table.
Required Minimum Distributions (RMDs): If you're 73 or older, planning your RMD strategy early in the year gives you more control over timing and tax impact. You might also explore Qualified Charitable Distributions if you don't need the income.
Bunching deductions: If you're close to the itemized deduction threshold, you might benefit from intentionally pushing expenses like charitable donations or medical bills into one year. This only works if you plan ahead.
The Value of Coordinated Planning
Most people have a financial advisor and a tax preparer, but those two professionals rarely talk to each other. That's a missed opportunity. When your advisor and CPA work together—modeling Roth conversions before you execute them, coordinating tax-loss harvesting with your overall tax picture, timing distributions strategically—you get a comprehensive plan instead of two separate strategies that might work against each other. The best planning happens when your whole team is on the same page.
Setting Yourself Up for Success in 2026
Take advantage of the IRA and HSA contribution window you still have for 2025. Every dollar you contribute now reduces your tax bill and compounds for your future.
Schedule a tax planning meeting for spring or early summer 2026—not December. Review where you stand and identify opportunities while you still have time to act.
Make sure your financial advisor and tax professional are actually communicating. Ask them to coordinate on major decisions.
Set up automatic contributions to retirement accounts and HSAs. Automate what you can so you're consistently saving without having to think about it.
Taxes are one of your biggest lifetime expenses, but they're also one of the most controllable. Smart tax planning isn't about finding loopholes—it's about being intentional and strategic throughout the year. That's the difference between reacting to your tax bill and actually managing it.
