Q4 Is Here — Is Your Year-End Tax Strategy in Place?
The calendar has officially turned to the fourth quarter, which means the end of the year will be here before we know it. While many people wait until December to think about tax planning, the truth is that some of the most valuable opportunities can slip away if you don’t act early. Now is the time to review your situation and make smart moves to minimize your 2025 tax bill and set yourself up for success in the new year.
Why Year-End Tax Planning Matters
Proactive planning in Q4 helps you:
Avoid surprises in April. A quick check-in now can reveal whether you’re on track with estimated payments or withholding.
Maximize available tax breaks. Many deductions and credits are “use it or lose it” by December 31.
Align finances with your goals. Whether you’re saving for retirement, planning charitable giving, or growing a business, year-end is a natural checkpoint for these activities.
Key Moves to Consider Before December 31
For Individuals:
Boost retirement savings. Contribute to your 401(k), IRA, or HSA while there’s still time.
Harvest capital losses. Selling underperforming investments can offset capital gains.
Time your charitable giving. Bunching donations into one year may help you itemize your deductions.
Check your withholding and estimated payments. Adjust now to avoid a big balance due when you file your taxes.
For Business Owners:
Review equipment purchases. Section 179 and bonus depreciation can offer significant write-offs.
Pay attention to payroll and draws. Ensure compensation is in line with IRS guidelines.
Clean up the books. Having accurate records now makes tax prep smoother later.
Evaluate your entity structure. The proper structure can improve both tax efficiency and liability protection.
For Retirees:
Required Minimum Distributions (RMDs). Don’t wait until the last minute to take your RMD.
Qualified Charitable Distributions (QCDs). If you’re over 70½, giving directly from your IRA can reduce taxable income.
Medicare premiums and planning. Income levels now can affect next year’s premiums.
Don’t Forget Open Enrollment Season
Fall is also open enrollment time for many employer benefits and for Medicare. Review your options with a tax lens:
Health Savings Accounts (HSAs). Contributions are triple tax-advantaged — made pre-tax, grow tax-free, and can be withdrawn tax-free when used for qualified medical expenses.
Flexible Spending Accounts (FSAs). Ensure you plan contributions that you can actually use.
Dependent care benefits. Consider how these align with your family’s needs.
Don’t Wait Until December
By the time the holidays arrive, your calendar will be complete — and so will your accountant’s. Taking action in October, November, or December gives you more flexibility and ensures you won’t miss deadlines.
At Carlson Hearne CPA, we help individuals, business owners, and retirees navigate tax planning with confidence. Let’s ensure your 2025 strategy is working for you before the year ends.
Call us at (307) 745-8134 or contact us to schedule a consultation.