Thanksgiving is here. Christmas is not far behind.
The clock is ticking. But there is still time to cut your taxes for 2025.
We shared several timely and powerful ways to trim your tax bill with Robyn A. Friedman, writing for City & Shore magazine.
“Even though it’s November, you still have plenty of time to lower your taxes for 2025 by checking out several simple but effective year-end strategies,” I told Robyn.
“It’s definitely not too late – and it may only take a few minutes of your time.”
Here are three of my top tips for year end:
Max out your retirement plans, especially 401(k)s, Traditional and Roth IRAs. If you run your own business or have consulting income on the side, you can make large deductible contributions to a Solo 401(k) plan. Best of all, there is still time to set up a new plan for qualifying taxpayers up through December 31.
Make your gifts count. Donating money to charity can cut your tax bill and help spread goodwill for the holidays and beyond. If you do plan to gift, consider giving appreciated securities (those that have gone up in value). You get a deduction for the full value of the gift, and the charity can sell the shares without paying capital gains. That way, your generosity goes farther. Don’t forget you can also gift up to $19,000 per person without having to report it to the IRS. Contributing to a College 529 Savings Plan for a child or grandchild doesn’t earn you a deduction, but it does grow tax-free to pay future education expenses.
Any investments that have gone down in value since you bought them? If that investment hasn’t worked out as planned, consider selling before year-end and using the capital loss to offset other capital gains in your portfolio. Plus, you can use up to $3,000 in net losses to offset wages or other income.
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As always, make sure to consult your tax advisor for strategies that apply to your particular situation.