December’s almost over, and if you’re like me, you’ve been putting off thinking about taxes until absolutely necessary. But here’s the thing—waiting until April to worry about your tax bill is basically leaving money on the table. I learned this the hard way after watching my accountant shake her head at all the things I could’ve done differently if I’d just acted before December 31st.
So let me share what I’ve figured out over the years. These aren’t complicated strategies that require a finance degree. They’re practical moves that have actually saved me money, and they might work for you too.
Max Out Your Retirement Contributions (Seriously, Just Do It)
This one’s probably the biggest no-brainer, but I ignored it for years because I thought I couldn’t afford it. Turns out, I couldn’t afford not to do it.
If you’ve got a 401(k) through work, see how close you are to hitting the contribution limit. For 2025, that’s $23,000, or $30,500 if you’re over 50. Even if you can’t max it out completely, bumping up your contribution for these last few paychecks can make a real difference when tax time rolls around.
I also started contributing to a traditional IRA a couple years back. Depending on your income, those contributions might be tax-deductible, which means less taxable income for you right now. Plus, you’re actually building something for your future instead of just handing more money to the IRS.
Turn Your Investment Losses Into Something Useful
Okay, so maybe some of your investments didn’t exactly crush it this year. I feel you—I’ve got a few stocks sitting in my portfolio that make me cringe every time I look at them. But those losers can actually help you out.
It’s called tax-loss harvesting, which sounds fancy but really just means selling investments that lost value to offset the gains from your winners. If your losses are bigger than your gains, you can even deduct up to $3,000 against your regular income.
Word of warning though—don’t just randomly sell stuff. I made that mistake once and messed up my whole investment strategy. Take a minute to think about whether you’d want to buy that investment again at today’s price. If the answer’s no, then maybe it’s time to let it go.
Get Your Charitable Donations In Before the Ball Drops
I used to think charitable donations were only worth it if you were giving away huge amounts of money. Wrong. Even smaller donations add up, especially if you’re itemizing your deductions.
The key is doing it before December 31st. That bag of clothes sitting in your closet that you keep meaning to donate? Get it to Goodwill this week. Got a charity you care about? Make that donation now, not in January.
And here’s something I didn’t know until recently—you can donate appreciated stocks directly to charities. You avoid paying capital gains tax, and you still get the deduction. Pretty sweet deal.
Just make sure you get receipts for everything. I learned this one the hard way when I couldn’t find documentation for a donation and couldn’t claim it. Keep a folder, take photos, whatever works—just don’t lose those receipts.
Check Your Withholding Before It’s Too Late
This year was weird for me financially. I picked up some freelance work, got an unexpected bonus, and basically my income was all over the place. Come tax time last year, I owed way more than I expected because my withholding was based on my old, lower salary.
Pull up the IRS Tax Withholding Estimator—it’s free and takes like ten minutes. If you’re going to owe a bunch, you can adjust your withholding now or make an estimated payment before year-end. Trust me, it’s better than getting hit with penalties and interest later. Been there, done that, don’t recommend it.
Actually Claim the Tax Credits You Qualify For
Here’s where I really dropped the ball for years—I wasn’t claiming tax credits I was eligible for because I didn’t even know they existed.
Tax credits are different from deductions, and they’re way better. Deductions reduce your taxable income, but credits reduce your actual tax bill dollar-for-dollar. That’s huge.
Depending on your situation, you might qualify for the Child Tax Credit, Earned Income Tax Credit, or education credits if you’re in school or have kids in college. There’s even a credit for making energy-efficient home improvements, which I used when I replaced my old windows last year.
Look into what applies to you. Even one credit can knock hundreds off your tax bill.
Life Happened? Your Taxes Need to Know
Got married this year? Had a baby? Bought a house? Started a side hustle? Congratulations—and also, your tax situation just got more complicated.
All those big life events change how much you owe and what you can deduct. When I bought my first house, I had no idea how many tax implications came with it. Update your filing status, adjust your withholding, and if you started a business, consider making year-end purchases for equipment or supplies you need anyway. Those are business expenses you can deduct right now.
Don’t Sleep on Your HSA
I ignored my Health Savings Account for the first two years I had one, which was stupid because it’s basically a triple tax break. You get a deduction when you contribute, the money grows tax-free, and you don’t pay taxes when you use it for medical expenses.
For 2025, you can put in $4,300 if you’re covering just yourself, or $8,550 for family coverage. Even if you don’t use it all this year, it rolls over. I’m basically treating mine like a medical emergency fund now, and it’s one of the smartest money moves I’ve made.
You’ve just got to have a high-deductible health plan to qualify, so check your insurance situation first.
The Bottom Line
Look, I get it. The end of the year is chaotic, and the last thing you want to do is think about taxes. But spending a few hours on this stuff now can save you a serious headache—and serious money—when April comes around.
I’m not saying you need to do everything on this list. Pick a couple things that make sense for your situation and just do them. Even small moves add up.
And if you’re sitting there thinking “this all sounds great but I have no idea what applies to me,” that’s totally fair. Talk to a tax professional. Yes, it costs money upfront, but a good accountant has saved me way more than they’ve charged. Think of it as an investment in not screwing up your taxes.
Whatever you do, don’t wait until January and then kick yourself for missing the deadline. Future you, sitting there filing taxes in April, will be really grateful that present you got off the couch and handled this.
You’ve got about two weeks. Make them count.