8 Essential Tax Tips to Close Out 2025 with Confidence

As 2025 comes to a close, now is the time to assess your tax position and take proactive steps before December 31, especially after the passage of the One Big Beautiful Bill Act earlier this year. Whether you’re a business owner, employee, or investor, thoughtful year-end planning can help you reduce your tax burden and prepare for a strong start to 2026.

1. Review Your W-2 Withholdings

If you receive a W-2, take a moment to evaluate your current tax withholdings. Adjusting now can help ensure you’ve paid in adequately throughout the year, avoiding surprises when it’s time to file your 2025 return.

2. Evaluate Your Estimated Tax Payments

Taxpayers who make quarterly estimated payments should review projected annual income to determine whether a fourth-quarter payment is needed. Accurate estimates help minimize penalties and keep your tax planning on track.

3. Ensure Your Books Are Up to Date

For business owners, well-maintained financial records are essential. Ensure your books are accurate, current, and reconciled. Clean records help identify tax-saving opportunities and streamline the filing process, reducing the chance of errors or missed deductions.

4. Maximize Retirement Contributions

Contributing to retirement accounts remains one of the most effective tax-saving strategies. Whether you’re an employee or a business owner, explore contribution options that align with your financial goals. Year-end is a great time to determine whether additional contributions could benefit you.

5. Contribute to HSAs and 529 Plans

If you’re eligible, contributions to Health Savings Accounts (HSAs) and 529 college savings plans can offer valuable tax advantages. Making these contributions before year-end helps you plan for future healthcare or education expenses in a tax-efficient way.

6. Consider Year-End Purchases with Bonus Depreciation

With the reinstatement of 100% bonus depreciation, businesses may benefit from purchasing needed equipment or assets before December 31. This strategy can increase deductions for 2025 and support long-term operational growth.

7. Analyze Your Investment Portfolio

Year-end is a key time to review your investment portfolio for potential taxable events.

Strategies may include:

• Tax-loss harvesting to offset gains
• Reviewing investment performance to determine taxable income
• Evaluating portfolio allocations ahead of 2026

A thoughtful approach helps you minimize tax exposure and strengthen your long-term financial plan.

8. Make Charitable Contributions Before December 31

Donations made before year-end can provide meaningful tax benefits, especially in 2025, ahead of the new charitable contribution limitations taking effect in 2026.

Consider strategies such as:

• Donating appreciated assets (like stocks) for greater tax efficiency
• Making Qualified Charitable Distributions (QCDs) from IRAs if you’re eligible

These options can enhance the impact of your giving while maximizing tax savings.

We’re Here to Help

Most year-end tax strategies depend on your unique financial situation. Our team works together to help clients navigate these decisions with clarity and confidence.

As you prepare for the new year, Wilkins Miller is here to support you every step of the way.

Download our PDF 2025 Year-End Tax Checklist.