Top 10 Things You Can Still Do to Lower Your 2025 Tax Bill

While 2025 is winding down and there are only a few days left in December, there are still a number of things you can do between now & April 15 to lower your 2025 tax bill!

1. Employees, Max Out Your 401(k), 403(b), or 457 Plans – Talk with your payroll department to have them allocate more of your bonus, or last paycheck of the year, towards your retirement account (Deadline: 12/31)
2. Entrepreneurs, Setup A Solo 401(k) Account – Solo 401(k) plans need to be established by December 31st, so make sure to complete that by year-end! Once the plan is established, you have until April 15th to max out your account.
3. Max Out Your HSA Account – The Health Savings Account (HSA) is arguably the most tax-advantaged account out there, so if you’re eligible, make sure you max it out for the year (Deadline: 4/15)
4. Fund 529 Plans – For those saving for education costs in the future, don’t forget to max out this tax-advantaged accounts (Deadline: 12/31)
5. Purchase Equipment, Vehicles, Software, etc. – If you need to make a large purchase for your business, take advantage of either Sec. 179 and\or bonus depreciation to potentially write off the entire purchase this year (Deadline: 12/31)
6. Setup an Accountable Plan – make sure you reimburse yourself for business expenses things like your home office, mileage, and other deductions (Deadline: 12/31)
7. Cost Segregation Study – If you bought real-estate during the tax year, speak with your tax pro to see if a cost segregation study could help you get a bigger depreciation write-off (Deadline: 4/15 to perform the cost seg study)
8. Tax Loss Harvesting – Review your investments to see if you have any “losers” you can sell this year to offset gains & minimize your capital gains taxes (Deadline: 12/31)
9. Donate to Charity – Don’t forget to donate to your favorite charities to do good for them & get a deduction yourself (Deadline: 12/31)
10. Max Out Your Roth IRA – Ok, so technically this won’t save money on this year’s tax bill, but I’d still argue it is one of the smartest tax moves you can make! By funding a retirement account & paying the taxes now, you’re locking in tax-free growth and tax-free withdrawals in retirement, potentially offering huge tax savings over your lifetime (Deadline: 4/15).

It is never too late to do a little tax planning, so review the list, pick one or two, and make some moves before it is too late!