As the year winds down, it’s the perfect time to evaluate your financial situation and make strategic decisions to minimize your tax bill. From charitable giving to maximizing retirement contributions, year-end planning can significantly impact your tax savings!
Top Strategies to Maximize Your Tax Year
Taking the time to prepare now, before the year officially wraps up, can ensure you’ll enter the upcoming tax season financially organized and better positioned for success. These tips can help you make the most of your deductions and more.
1. Organize Your Tax Records
Start by gathering and organizing your tax documents. Having everything in order will make filing your taxes easier and help identify areas where you can save.
2. Maximize Retirement Contributions
Fully fund your retirement accounts, such as 401(k)s and IRAs, to take advantage of tax-deferred growth and potential deductions.
3. Review Required Minimum Distributions (RMDs)
If you’re 73 or older, ensure you’ve taken your RMDs from retirement accounts to avoid penalties.
4. Estimate Your Tax Liability
Run the numbers to estimate your tax liability for the year. If necessary, make an additional estimated tax payment to avoid penalties for underpayment.
5. Adjust W-2 Withholdings
Review your W-2 withholdings to ensure you’re on track for next year. If needed, file a new W-4 with your employer to make adjustments.
6. Make Last-Minute Charitable Donations
Charitable donations are an excellent way to reduce your taxable income, but ensure they align with your itemized deduction limit. Consider donating appreciated stock held for over a year to maximize your benefit.
7. Donate Appreciated Stock
By donating stock that has appreciated in value for more than a year, you can avoid paying capital gains tax while still claiming a deduction for the stock’s full market value.
8. Review Your Investment Portfolio
Take a close look at your investment portfolio to strategically realize capital gains or losses. You can use up to $3,000 in net capital losses to reduce ordinary income.
9. Take Advantage of the Kiddie Tax Threshold
Unearned income of up to $2,600 earned by your child is taxed at their lower rate, providing an opportunity to reduce overall family tax obligations.
10. Maximize Gift Giving
The IRS allows you to give up to $18,000 per person annually without triggering a gift tax. Consider using this exemption to transfer wealth tax-free.
11. Review Flexible Spending Accounts (FSAs)
Check your FSA for medical or dependent care expenses to ensure you’ve used all contributions that won’t roll over into the new year.
12. Plan for Household Employees
If you employ a nanny, housekeeper, or other household staff, ensure you’re properly tracking their wages and paying employment taxes.
13. Consider Roth IRA Rollovers
If your income is lower this year, it might be a good time to roll over funds from a traditional IRA to a Roth IRA, spreading out the tax liability.
14. Prepare for Tax Season Early
Create a checklist of all expected tax forms, such as 1099s and W-2s. This step will help you avoid delays in filing.
15. Consult a Professional
Before taking any action, consult a tax professional to ensure compliance with IRS rules and maximize your savings opportunities.
Take Action Now with a Tax Planning Session
Proactive planning can save you significant money and stress when tax season arrives. Let our team at NSO & Company guide you through the right steps. Together, we can identify strategic opportunities for savings. Contact us today to get started!
Frequently Asked Questions
Our clients appreciate our fair, transparent pricing — no surprise fees, no confusing invoices. Individual tax returns start at $750, and business returns start at $1,500. If you’d like to talk through your specific situation before committing, a one-hour consultation with a CPA and tax preparer is $250.
Every client’s needs are different, so these starting rates can vary based on the complexity of your return or the scope of services you need. Visit our pricing page for more detail.
If you need accounting, bookkeeping, or tax services, contact us today — we’d love to learn more about your situation and provide pricing tailored to your needs.
We work with a wide variety of individual and business clients across central Indiana. Our clients range from entrepreneurs and small business owners to business professionals, retired individuals, families, and business corporations of all sizes.
Whether you’re just starting a business, managing personal and family finances, planning for retirement, or running an established company, we tailor our accounting, tax, and advisory services to fit where you are and where you’re headed. No two clients are exactly alike, and neither is our approach — we take the time to understand your specific situation so we can offer advice that actually applies to you.
NSO and Company is located in Fishers, Indiana, just off I-69 near the intersection of Lantern Road and 96th Street — an easy, convenient drive from anywhere in the Indianapolis area. Our office is at 8950 Fitness Lane, Suite 100, Fishers, IN 46037.
We’re open Monday through Friday, 8 am – 4 pm, and welcome walk-ins as well as scheduled appointments. If you’d like to speak with someone directly, call us at 317-588-3131.
NSO and Company combines years of experience with personalized service to help individuals and businesses prepare their taxes accurately and on time. We take the time to understand your situation, answer your questions, and look for opportunities to help you maximize your tax savings, while staying compliant and making the process as smooth as possible. Our clients also value our fair pricing and the confidence that comes from working with a trusted local firm.
