Don’t Wait Until Tax Season: Tax Moves to Consider Before Year-End
When most people think about taxes, they think about tax season and hoping they don't owe any money when it does come around.
I dont want it to come to another year of you gathering W-2s, finding 1099s, digging through receipts and sitting down with your tax professional and hoping for the best.
By the time tax season arrives, the year is already over.
And sometimes, so are your opportunities to make certain tax moves.
That’s why I want you to think about taxes before December 31.
Tax preparation is about reporting what already happened.
Tax planning is about looking at what’s happening now and determining whether there are moves you can make before the year ends.
Depending on your income, employment, business, health insurance, retirement accounts and overall financial situation, here are a few strategies worth exploring.
1. Contribute to an HSA
If you're eligible for a Health Savings Account (HSA), this is one of my favorite accounts to talk about because of its tax benefits.
Eligible contributions you make to an HSA can generally be deductible even if you don't itemize your deductions. Earnings within the account can grow tax-free, and withdrawals used for qualified medical expenses can also be tax-free.
That means an HSA isn't just a way to pay this year's doctor bills. Money you don't use can remain in the account for future qualified medical expenses.
The important part: not everyone is eligible to contribute to an HSA. Eligibility generally depends on having qualifying high-deductible health plan coverage and meeting other requirements.
2. Consider a Traditional IRA
Saving for retirement could potentially help you with your taxes, too.
For 2026, the combined contribution limit across your Traditional and Roth IRAs is generally $7,500, or $8,600 if you're age 50 or older, subject to compensation and other rules.
A contribution to a Traditional IRA may be deductible, but whether you qualify for the deduction can depend on factors including your income, filing status and whether you or your spouse are covered by a retirement plan at work.
So don't assume that putting money into a Traditional IRA automatically means you'll receive a tax deduction.
3. Don't Forget About the Roth IRA
A Roth IRA contribution generally won’t give you a tax deduction today, but that doesn’t mean it can’t provide a tax benefit.
Roth IRA contributions are made with after-tax dollars, and qualified withdrawals in retirement can be tax-free.
But here’s something many people don’t realize: depending on your income and other eligibility requirements, contributing to a Roth IRA may also qualify you for the Saver’s Credit.
The Saver’s Credit is available to certain eligible taxpayers who contribute to qualifying retirement accounts, including Traditional and Roth IRAs. Unlike a tax deduction, which reduces your taxable income, a tax credit can directly reduce the amount of federal income tax you owe.
So, for someone who qualifies, a Roth IRA could offer two different tax advantages: a potential tax credit today through the Saver’s Credit and potentially tax-free qualified withdrawals in retirement.
Keep in mind that Traditional and Roth IRAs share the same annual contribution limit. For 2026, the combined limit is generally $7,500, or $8,600 if you’re age 50 or older.
Tax planning tip: Don’t automatically assume that “Roth = no tax benefit today.” Your income and individual circumstances matter, so it’s worth checking whether you qualify for the Saver’s Credit.
4. Increase Your Workplace Retirement Contributions
Have a 401(k), 403(b) or similar retirement plan through work? Take a look at what you've contributed so far this year.
Depending on the type of contributions you're making, increasing your contributions before year-end could allow you to put more toward retirement while potentially reducing your current taxable income.
This is also a good time to ask yourself a bigger question:
Am I taking full advantage of the benefits available through my employer?
Don't leave money or opportunities on the table simply because you haven't reviewed your benefits lately.
5. Self-Employed? Look at Your Retirement Options
If you're an actor, creative, freelancer, content creator or other business owner earning self-employment income, you may have retirement options beyond a regular IRA.
A SEP IRA or Solo 401(k) may allow eligible self-employed individuals to contribute significantly more toward retirement than a traditional or Roth IRA, depending on income and the plan involved.
The rules, calculations and deadlines are different for each plan, so this is one area where I'd encourage you to look at your individual situation rather than choosing an account solely because you heard someone else uses it.
6. Review Your Business Expenses
Business owners: please don't wait until February or March to figure out what happened in your business.
Take some time during Q4 to review your books.
Are all of your expenses recorded?
Are you missing receipts?
Did you purchase equipment, software, professional services, supplies or other items that were ordinary and necessary for your business?
Are any personal and business expenses mixed together that need to be properly categorized?
And remember: don't spend $1 just to save a fraction of that amount in taxes.
A deduction doesn't make something free.
If your business genuinely needs something, year-end may be an appropriate time to purchase it. But buying something you don't need solely because it's "a write-off" isn't necessarily a good financial decision.
7. Review Your Charitable Giving
If charitable giving is already part of your financial plan, year-end is a good time to review what you've given and keep appropriate documentation.
Generally, charitable contributions are deducted when you itemize your deductions rather than take the standard deduction. If your eligible itemized deductions exceed the standard deduction available to you, itemizing may provide the greater tax benefit.
So, before assuming your donations will lower your tax bill, understand how you file and whether you’ll be itemizing your deductions.
And remember: a charitable deduction isn't a dollar-for-dollar reduction of your taxes. Give because the organization or cause matters to you—not simply for the tax benefit.
8. Check Your Estimated Taxes or Withholding
This one may not technically reduce your taxes, but it can help prevent an unpleasant surprise.
If your income changed this year, you started a business, picked up freelance work, received more 1099 income than expected, or had another significant financial change, take another look at your estimated tax payments or paycheck withholding.
The IRS specifically recommends checking withholding after major income and life changes, and its withholding estimator can help W-2 employees determine whether adjustments may be appropriate.
For self-employed individuals, Q4 is also a good time to compare what you've already paid in estimated taxes with what you're currently projecting for the year.
Finding out now gives you time to make a plan.
Finding out when your return is being prepared gives you far fewer options.
The Bigger Point:
Be Intentional Before the Year Ends
You don't necessarily need to do all eight of these things.
You may not need to do any of them. That's the point of tax planning.
It's not about finding every deduction possible or making financial moves simply to avoid taxes. It's about understanding the options available to you and making decisions that support your overall financial picture.
Before the end of the year, ask yourself:
What has changed financially since I filed my last tax return?
Maybe you earned more money. Started a business. Changed jobs. Got married. Had a child. Started freelancing. Bought a home. Increased your business income. Began investing. Or finally have some extra money available to put toward retirement.
Those changes are worth reviewing before tax season arrives.
Not Sure Which Options Apply to You?
Google can give you plenty of information. What it can't always tell you is how that information applies to your specific financial situation.
If you're looking at these options thinking, Okay Jasmine...but which one should I be considering? that's exactly the kind of question we can talk through.
During an Ask Jasmine Anything session, you can bring your questions about your personal finances, business finances, taxes, retirement options or your next money move, and we'll break them down together.
This article is for general educational purposes and is not individualized tax, legal, or investment advice. Eligibility, contribution limits, deadlines and tax treatment can vary based on your individual circumstances.
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