9 Tax Strategies to Review Before December 31

Tax filing deadlines may still feel far away, but many of the decisions that can affect your tax outcome need to happen before December 31.

A year-end tax review gives you time to look at income, deductions, retirement savings, charitable giving, and major financial changes while there may still be opportunities to act. Here are several areas worth reviewing before the year comes to a close.

1. Check Your Estimated Tax Payments

If you earn income without regular tax withholding, review your estimated payments before year-end. This may include income from self-employment, investments, rental properties, or other sources.

Confirming that you have paid enough throughout the year may help reduce underpayment penalties and prevent an unexpected balance at filing time.

It is also a good time to add next year’s estimated tax deadlines to your calendar.

2. Review Retirement Contributions

Retirement contributions can support both your long-term financial goals and your current tax strategy.

Review contributions to workplace retirement plans, Traditional IRAs, SEP IRAs, SIMPLE IRAs, and other eligible accounts to see whether you are taking advantage of the contribution opportunities available to you.

Starting this review before the final weeks of December gives you more time to make adjustments where appropriate.

3. Revisit Your Charitable Giving

If charitable giving is part of your financial plan, year-end is a good time to review both how much you give and how you give it.

Depending on your circumstances, strategies may include:

• Cash contributions
• Donations of appreciated securities
• Qualified charitable distributions
• Other eligible charitable gifts

Good recordkeeping matters too, so be sure to retain receipts and written acknowledgments when required.

Beginning with the 2026 tax year, taxpayers who take the standard deduction may also have access to new rules for deducting certain qualifying charitable cash contributions, subject to applicable limits and requirements.

4. Make the Most of Your HSA

For eligible individuals, a Health Savings Account can offer multiple tax advantages. Contributions may be deductible, earnings generally grow tax-free, and qualified medical withdrawals are typically tax-free.

Review your contributions before year-end to determine whether you have room to contribute more and whether doing so fits into your broader financial plan.

5. Check Your FSA Balance

If you participate in a Healthcare FSA or Dependent Care FSA, take a look at your remaining balance and your employer’s plan rules.

Some plans allow a limited carryover or grace period, while others may require unused funds to be forfeited.

Checking early gives you time to use available funds for eligible expenses rather than discovering an unused balance after the deadline has passed.

6. Consider the Timing of Income and Expenses

For self-employed individuals and business owners, when income is received and expenses are paid may affect the current year’s tax picture.

Depending on your circumstances, it may be worth evaluating planned equipment purchases, supplies, other deductible expenses, or the timing of certain income.

These decisions should be considered as part of your broader financial situation rather than made solely for a tax benefit. Your CPA can help determine whether adjusting the timing of income or expenses makes sense for you.

7. Account for Major Life Changes

A lot can change in a year—and some of those changes can have tax consequences.

Marriage, welcoming a child, changing jobs, starting a business, retiring, buying a home, or selling investments can all affect your tax situation.

If you experienced a major change this year or expect one soon, a year-end conversation with your CPA can help identify adjustments or planning opportunities before tax season arrives.

8. Confirm Required Minimum Distributions

If you are required to take distributions from retirement accounts, confirm that your Required Minimum Distributions have been completed before the applicable deadline.

Certain inherited retirement accounts may also have distribution requirements.

Because missing an RMD can result in penalties, it is worth reviewing these accounts well before year-end rather than waiting until December.

9. Get Your Records in Order

Good records make tax planning—and tax preparation—much easier.

If you use a personal vehicle for qualifying business or other deductible purposes, for example, make sure your mileage records are complete. A useful mileage log generally includes the date, destination, purpose of the trip, and miles driven.

The same principle applies to charitable contributions, business expenses, investment transactions, and other documents you may need when preparing your return.

Don’t Wait Until Filing Season to Plan

Once January arrives, some tax-planning opportunities for the previous year may already be gone.

A year-end tax planning review can help you evaluate estimated payments, retirement contributions, charitable giving, investment activity, business expenses, and other decisions while there is still time to make adjustments.

Even if your finances have not changed significantly, a proactive review may uncover opportunities you have not considered.

Have questions about your year-end tax strategy? BNA CPAs & Advisors can help you review your situation and identify planning opportunities before December 31.