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Don't Wait for April: 4 Year-End Tax Planning Moves to Make This Fall

  • November 25, 2025
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As the leaves change and the air gets cooler here in Kentucky, the last thing on most people’s minds is their tax return. It’s easy to put off any thoughts of taxes until April, but here’s a secret the most financially savvy people know: tax filing happens in the spring, but tax planning happens now.


Waiting until April to think about your taxes is like trying to plan a party after all the guests have already arrived. The game is over, and the results are set. By making a few strategic moves in November and December, you can significantly impact your tax bill, reduce stress, and set yourself up for financial success in the new year.


Here are four year-end tax planning moves to consider making this fall.

Maximize Your Retirement Savings

This is one of the most powerful and popular year-end tax strategies. Every dollar you contribute to a traditional 401(k) or traditional IRA is a dollar that reduces your Adjusted Gross Income (AGI). A lower AGI doesn’t just lower your taxable income; it can also help you qualify for other valuable credits and deductions.

  • Your Action Plan:
    • 401(k): Check your pay stubs and see if you are on track to max out your 401(k) contribution for the year. If you’re not, consider increasing your withholding for the last few paychecks of the year. The deadline for 401(k) contributions is December 31st.
    • IRA: You technically have until the tax filing deadline in April to contribute to an IRA, but why wait? Planning for it now ensures you’ll have the cash set aside and can take advantage of the deduction when you file.

“Harvest” Your Investment Losses

This strategy, known as tax-loss harvesting, is a smart way to manage your investment portfolio. Did you sell some stocks or mutual funds for a profit this year? If so, you’ll owe capital gains tax on that profit.

You can offset those gains by selling other investments in your portfolio that are currently at a loss. You can use these “harvested” losses to wipe out your gains, dollar for dollar.

  • Your Action Plan:
    • Review your investment portfolio with your financial advisor.
    • Identify any investments that are down from when you purchased them.
    • By selling those losing investments, you can offset the gains from your winners. If your losses exceed your gains, you can even deduct up to $3,000 of those losses against your ordinary income.

Bunch Your Charitable Donations

Giving to charity is a wonderful way to support causes you care about, but the high standard deduction has made it harder for many people to get a tax benefit for it. To deduct your donations, you must itemize, meaning your total itemized deductions (charity, state and local taxes, mortgage interest, etc.) must be more than the standard deduction.

“Bunching” is a strategy where you concentrate your donations. For example, instead of donating $1,000 every year, you might “bunch” two years’ worth of donations and give $2,000 in one year. This may push you over the standard deduction hurdle, allowing you to itemize and get the full tax benefit.

  • Your Action Plan:
    • Look at your charitable giving for the year.
    • If your total itemized deductions are close to the standard deduction, consider making your 2026 contributions before December 31st of this year. This can be done with cash, appreciated stock, or by using a Donor-Advised Fund (DAF).

For Business Owners: Accelerate Expenses

If you’re a small business owner who uses cash-basis accounting, this move is for you. To lower your business’s taxable income for this year, you can “accelerate” expenses by paying for them before December 31st.

  • Your Action Plan:
    • Do you need a new office computer or printer? Buy it now, not in January.
    • Do you have software subscriptions or professional dues coming up? Pay them before the end of the year.
    • Stock up on necessary office supplies (paper, toner, etc.) that you know you will use in the coming months. Every dollar you spend on a deductible expense this fall is a dollar you don’t pay taxes on.

Don't Plan Your Future Alone

Year-end tax planning can be complex, and the best strategy depends on your unique financial situation. These moves are powerful, but they work best when guided by a professional who can see the whole picture.

Don’t wait until April. Contact us at Bluegrass Accounting & Tax Solutions today to schedule a year-end review. Let’s work together this fall to make your next tax season your easiest one yet.

Frequently Asked Questions

Contributions made through payroll deduction must be made by December 31, 2025, to count for the 2025 tax year.

You can make contributions for the 2025 tax year up until the tax filing deadline, which is typically in April 2026. However, planning for it now is a smart financial move.

You can use capital losses to offset any amount of capital gains. If you have more losses than gains, you can deduct up to $3,000 of those excess losses against your ordinary income per year. Any remaining losses can be carried forward to future years.

For most taxpayers, no. The special (above-the-line) charitable deduction that was available during S-COVID is no longer active. You must itemize your deductions to get a tax benefit for your charitable giving, which is why “bunching” has become such an important strategy.

The best time is now, in November or early December. This gives us time to review your finances and implement these strategies before the December 31st deadline. Contact us today to get on the calendar.