Year-End Tax Planning: Smart Moves to Maximize Savings Before December 31

As the year winds down, it’s the perfect time to take stock of your financial picture and make strategic decisions that can reduce your tax bill. At JT Stratford, we believe proactive planning is key to turning tax season from a stressor into a strategic advantage.

Here are some high-impact steps you can take before December 31 to maximize your tax savings and set yourself up for a strong start to the new year.

💸 1. Maximize Retirement Contributions

Contributing to tax-advantaged retirement accounts can reduce your taxable income.

401(k)/403(b): Max out contributions ($23,500 for 2025; $31,000 if age 50+).
Traditional IRA: Consider deductible contributions if eligible.
SEP IRA or Solo 401(k): For business owners or self-employed individuals.

🧾 2. Harvest Tax Losses

Review your portfolio for underperforming assets and consider selling to offset gains.

Tax-Loss Harvesting: Realize losses to offset capital gains.
Rebalancing Opportunity: Reinvest proceeds in line with long-term strategy.

🎁 3. Make Charitable Contributions

Giving back can also give you a tax break.

Cash Donations: Deductible if made to qualified charities.
Appreciated Securities: Avoid capital gains and get a full deduction.
Donor-Advised Funds: Front-load giving for future years while capturing deductions now.

🧮 4. Review Income and Deductions

Timing matters — especially if your income fluctuates.

Bunching Deductions: Combine itemized deductions into one year to exceed the standard deduction.
Deferring Income: Push bonuses or self-employment income into next year if possible.
Flexible Spending Accounts (FSAs): Use remaining balances before they expire.

📋 5. Check Your Withholding and Estimated Payments

Avoid surprises in April by reviewing your tax payments now.

Withholding Review: Adjust W-4 if you’ve had major life changes.
Estimated Taxes: Make final quarterly payments by January 15 to avoid penalties.

🧭 6. Plan for Gifting and Estate Strategies

Year-end is a great time to revisit legacy planning.

Annual Gift Exclusion: Gift up to $19,000 per recipient tax-free. ($38,000 per couple)
529 Plan Contributions: May offer state tax benefits.
Trust Funding: Consider funding irrevocable trusts or charitable vehicles.

💬 Let’s Make the Most of the Year-End Window

Every client’s situation is unique — and the best tax strategies depend on your goals, income, and portfolio. Reach out to your JT Stratford advisor today to schedule a year-end planning session. Together, we can review your financial plan for impact and efficiency.

JT Stratford, LLC is an SEC-registered investment adviser. This content is for informational purposes only and does not constitute personalized investment advice. Investing involves risk, including the possible loss of principal. Additionally, while our services include tax planning, please note we do not offer specific tax services; so you will want to consult your tax preparer before implementing any tax planning strategies introduced here. Any reduction in taxes would depend on an individual’s tax situation. No information found on this website is intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. We do not offer tax or legal advice.