Year-End Tax Planning Checklist
1. Max Out Retirement Contributions
Contribute to 401(k)s, IRAs, or HSAs before year-end (or before the April tax deadline, depending on the account). If you’re 50+, don’t forget catch-up contributions.
2. Use Your FSA Funds
Flexible Spending Accounts often have a “use it or lose it” rule. Make sure to spend remaining balances on eligible expenses.
3. Harvest Capital Losses
Selling underperforming investments to offset gains can reduce your taxable income. Be aware of the wash-sale rule.
4. Make Charitable Donations
Donate to a qualified charity and document the gift. Consider donating appreciated stock instead of cash for double tax benefits.
5. Review Withholding and Estimated Taxes
Avoid underpayment penalties by adjusting your withholding or making a final estimated tax payment if necessary.
6. Evaluate Business Expenses
If you’re self-employed, purchasing needed equipment or paying for services in advance can boost deductions.
7. Spend Education Savings Wisely
If using a 529 plan, ensure withdrawals match qualified education expenses incurred this year.
8. Check Required Minimum Distributions (RMDs)
If you’re age 73 or older, be sure to take your RMDs before the deadline—or face a hefty penalty.
Finish the Year With Confidence
Don’t scramble last minute. Pacific Tax & Financial Group helps individuals and business owners maximize deductions and avoid surprises. Call us today to finalize your year-end tax strategy with expert guidance.