🎯 Why Year-End Tax Planning Matters

Year-end tax planning helps you:

• Maximize deductions and credits
• Avoid surprises when filing
• Strategically time income and expenses
• Prepare for changes in tax laws

📋 Key Steps to Take Before December 31

1. Review Your Income and Expenses

Take stock of your earnings and deductible expenses. If you're close to a tax bracket threshold, you may want to defer income or accelerate deductions.

2. Make Charitable Contributions

Donations to qualified charities made before December 31 can be deducted. Be sure to keep receipts and documentation.

3. Use Up Flexible Spending Accounts (FSAs)

If you have an FSA, use the remaining balance before it expires. Eligible expenses include medical, dental, and vision costs.

4. Consider Retirement Contributions

Contributing to retirement accounts like IRAs or 401(k)s not only helps your future—it can also lower your taxable income.

5. Check for Tax Law Changes

Tax laws can shift year to year. Stay informed or consult a tax professional to understand how new rules may affect you.

🧾 Bonus Tip for Small Business Owners

If you run a business, consider purchasing equipment or supplies before year-end to take advantage of Section 179 deductions.