Posted on October 4th, 2025

The end of the year might feel far away, but when it comes to taxes, now is the time to act. By planning ahead before December 31, you can set yourself up for major savings and avoid a stressful tax season. Here are five smart strategies you can put into motion today.

1. Max Out Retirement Contributions

Contributions to retirement accounts like a 401(k) or traditional IRA can reduce your taxable income for the year. For 2025, you can contribute up to $23,000 to a 401(k) (plus an additional $7,500 if you’re over 50). Even small contributions before year-end can add up.

2. Harvest Investment Losses

If you’ve had investments that lost value this year, you may be able to use those losses to offset gains. Known as tax-loss harvesting, this strategy can reduce the taxes you owe on capital gains and even offset up to $3,000 of regular income.

3. Make Charitable Donations

Donating to qualified charities before December 31 can help you support causes you care about and give you a potential tax deduction. Keep good records, especially for non-cash donations like clothing, household items, or even appreciated stock.

4. Plan for Business Expenses

If you’re a small business owner or self-employed, consider making necessary business purchases before year-end. Office equipment, software, and even marketing expenses may qualify as deductions. Timing these strategically can reduce your taxable income for 2025.

5. Check Your Withholding & Estimated Taxes

Avoid surprises in April by reviewing your paycheck withholding or estimated tax payments now. Making adjustments before the year closes can save you from underpayment penalties and big tax bills later.

Conclusion:

Don’t wait until tax season to think about taxes—proactive steps today can mean real savings tomorrow. If you’d like a personalized review of your tax situation, reach out now. A quick year-end planning session can put you in control and give you peace of mind heading into the new year.

📞 Contact Data Mind Tax & Accounting today to schedule your year-end tax review.