Your Year-End Tax Planning Checklist for 2025

Welcome back! Last week, we talked about why year-end tax planning is so important. Now, it’s time to take action. Use this checklist to make sure you’re covering all your bases before December 31.

✅ Income and Deductions

• Review your income sources and estimate your total taxable income.

• Consider deferring income to next year if you expect to be in a lower tax bracket.

• Accelerate deductible expenses (e.g., medical bills, mortgage interest, property taxes).

• Make charitable contributions and keep receipts.

• Pay any state/local taxes due before year-end if itemizing deductions.

✅ Retirement Contributions

• Max out contributions to employer-sponsored plans (e.g., 401(k), 403(b)).

• Make IRA contributions (Traditional or Roth).

• Consider a Roth conversion if it aligns with your long-term tax strategy.

✅ Investments

• Review your portfolio for capital gains/losses.

• Harvest tax losses to offset gains.

• Rebalance your portfolio if needed.

✅ Business Owners and Self-Employed

• Purchase necessary equipment or supplies to take advantage of Section 179 deductions.

• Pay estimated taxes to avoid penalties.

• Consider setting up or contributing to a SEP IRA or Solo 401(k).

✅ Family and Education

• Use the annual gift tax exclusion ($18,000 per recipient in 2024).

• Contribute to 529 college savings plans.

• Claim any eligible education credits (e.g., American Opportunity or Lifetime Learning).

✅ Tax Credits and Other Considerations

• Check eligibility for energy-efficient home improvement credits.

• Review eligibility for child tax credit or earned income tax credit.

• Use up any Flexible Spending Account (FSA) funds before they expire.

✅ Documentation and Planning

• Organize receipts and records for deductions and credits.

• Review last year’s tax return for missed opportunities.

• Schedule a meeting with a tax advisor or CPA.

Final Tip: Don’t wait until the last minute. A little planning now can save you a lot of stress—and money—later. As always, your GranthamPoole advisor is here to help!