5 Year-End Tax Moves to Make Now 

As the end of the year approaches, proactive tax planning becomes crucial for individuals and businesses alike.  

Taking proactive steps now can significantly impact your tax liability come April. 

By strategically leveraging available deductions, credits, and tax-advantaged opportunities, you can potentially minimize your tax burden and enhance your financial standing. 

Here are five key strategies to consider before December 31st: 

1. Maximize Retirement Contributions: 

One of the most effective ways to reduce your taxable income is by contributing to tax-advantaged retirement accounts.  

If you haven’t already maxed out your 401(k) contributions for the year, consider increasing your contributions in the remaining pay periods. For 2024, you can contribute up to $22,500, or $30,000 if you’re 50 or older.  

Don’t forget about Individual Retirement Accounts (IRAs) either. You have until April 15, 2025, to contribute to an IRA for the 2024 tax year. 

2. Harvest Those Losses: 

Did some of your investments take a hit this year? Consider selling those losing stocks or bonds to realize a capital loss.  

You can use these losses to offset any capital gains you may have incurred, reducing your overall tax burden. If your losses exceed your gains, you can deduct up to $3,000 from your ordinary income. 

3. Be Charitable: 

The holiday season is a time for giving, and charitable contributions can offer tax benefits as well. If you itemize deductions, donations to qualified charities can be deducted from your taxable income.  

Remember to keep detailed records of your contributions, including receipts and acknowledgment letters. 

4. Manage Your Medical Expenses: 

If you anticipate significant medical expenses before the end of the year, consider bunching them together.  

You can deduct medical expenses exceeding 7.5% of your adjusted gross income (AGI). This might include scheduling necessary procedures, purchasing medical equipment, or stocking up on prescription medications. 

5. Year-End Business Considerations: 

For business owners, there are additional strategies to explore. Consider deferring income to the next tax year, accelerating deductions, and taking advantage of any available tax credits.  

If you are self-employed, remember to make your fourth quarter estimated tax payment by January 15, 2025, to avoid penalties. 

Need Expert Tax Attorney Advice? 

Tax laws are complex and ever-changing. Navigating these intricacies can be challenging, especially when you are trying to optimize your tax position.  

The experienced tax attorneys and accountants at Milton Law Group can provide personalized guidance and ensure you are taking advantage of all available deductions and credits. 

Do not wait until April to start thinking about your taxes. 

Contact Milton Law Group today for a consultation and let us help you minimize your tax liability and achieve your financial goals.