At the end of each year, there are some things to consider that may have a positive impact on your tax obligation. Here is a list of ideas worth a quick review while there is still time. But act on that tax planning soon, as the year-end is fast approaching. And especially this year, with recent tax law changes.

1. Maximize your retirement savings while reducing your taxable income. There is still time to make contributions to employer-sponsored retirement plans, such as a 401(k). Remember, each year has a contribution limit, and if you don’t take advantage of it, it is lost. And with law changes, it is important to note:

• Special bonus catch-up contributions for those aged 60 to 63 are $11,250 (up from $7,500), so leverage this rule if it applies to you.
• Beginning in 2026, individuals with incomes above $125,000 can only make catch-up contributions to Roth employer retirement accounts. So ensure you are tax planning accordingly this year-end and next.

2. Leverage the new $40,000 tax limit for itemized deductions. This is up from $10,000. It may affect how you itemize your tax return this year.

3. Fund your final charitable donations. Remember, your strategy here may change with new law changes, including the ability to deduct more of your taxes this year. Include in this review:

• Donating appreciated stock owned for one year or longer, either directly to a qualified charity or through a donor-advised charitable trust.
• If you are 70 1/2 or older, consider making a qualified charitable donation (QCD) from a qualified retirement account. The limit in 2025 is $108,000 ($216,000 for married couples) and can serve as both your required minimum distribution and a tax-saving tool. But ask for help here, as you need to do this correctly.

4. Review your investment portfolio for capital gain and loss planning. In addition to the ideas already mentioned, remember that you can net gains against losses and use up to $3,000 in net capital losses to offset ordinary income.

5. Maximize the kiddie tax threshold and gift rules. $2,700 of unearned income can be taxed at your child’s lower tax rate, and you can gift up to $19,000 per taxpayer this year.

6. Review medical funding accounts. Remember, if available to you, contributions to a Health Savings Account (HSA) effectively save you money on all your qualified medical, dental, and vision expenses. Plus, unused balances carry over from year to year. So maximize the annual contribution while there is still time. While Medical Savings Accounts (MSAs) do not have the same flexibility, it is good to review the rules now and take advantage of any plan available to you to ensure you do not lose this tax-free funding opportunity.

7. Prepare now for tax-free tips and overtime pay. If you have not already done so, review the approved occupations for qualified tips and confirm the amount of this benefit long before you receive documentation from your employer. The same holds for overtime pay. Employers are not required to issue W-2s or 1099s with this breakout in 2025, so you will need to ensure the reporting you do receive is accurate.

8. Estimate your tax liability and make any final estimated tax payments. Please note the impact of:

• Tax-free tips and overtime pay
• The new $6,000 senior deduction ($12,000 if you and your spouse qualify)
• Your current tax withholdings, and make any adjustments
• Any other impacts from the new tax laws (like interest paid on new car loans), and how they change your situation

9. Consider any rollover of tax-deferred retirement accounts into Roth accounts.

10. Get prepared for tax filing. This includes:

• Creating a list of expected W-2s and 1099s
• Review of your tax withholdings
• Issuing any required tax forms (especially if you have household employees)
• Organization of your tax records

Should you have any questions on these ideas or are ready to start your year-end tax planning, contact our RRBB advisors. In many cases, the requirements and documentation needed are essential to ensure you receive the full tax savings benefit.