Year-End Tax Planning Tips for 2025
- Nov 30, 2025
- 2 min read
As 2025 comes to a close, smart tax planning can make a big difference in your refund or liability. Acting before December 31 ensures you capture deductions, credits, and strategies that disappear once the calendar flips
“Tax planning is not about avoiding taxes — it’s about aligning your financial life with your goals.” — Lattice Group
Maximize Retirement Contributions
• Contribute to your 401(k) by year-end (limit: $23,500; catch-up: $7,500 if age 50+).
• IRAs and HSAs allow contributions until April 15, 2026, but funding now gives your money more time to grow.
Use Tax-Loss Harvesting
• Sell underperforming investments to offset gains.
• Deduct up to $3,000 against ordinary income if losses exceed gains.
• Watch out for the wash-sale rule (no repurchases within 30 days).
Charitable Giving
• Donations made by Dec. 31 count for 2025.
• New rules in 2026 allow non-itemizers to deduct up to $2,000, so plan timing strategically.
Take Advantage of New Deductions
• SALT cap raised to $40,000 – itemizing may now benefit more households.
• Auto loan interest deduction up to $10,000 for qualifying 2025 purchases.
• Tips & overtime deduction: up to $25,000 for joint filers.
• Senior bonus deduction: extra $6,000 if age 65+ with income under $75,000.
Energy-Efficient Home Credits
• Claim 30% credit for solar, battery storage, or qualifying home upgrades completed by year-end.
Don’t Forget RMDs & FSAs
• If you’re 73+, take your required minimum distribution by Dec. 31 to avoid penalties.
• Spend down FSA balances before they expire.
Important Deadlines
Dec. 31, 2025 → 401(k) contributions, charitable gifts, RMDs, FSA spending
April 15, 2026 → IRA & HSA contributions
Key Takeaway
Year-end tax planning is about acting now to save later. From maximizing retirement contributions to leveraging new deductions, these moves can reduce your 2025 tax bill and set you up for success in 2026.
Ready to maximize your year-end tax savings?
Schedule a consultation with Lattice Group today and start 2026 with confidence.
By Lattice Group – Your Trusted Tustin CPA Firm
