Taxes · November 18, 2025
Why year-end tax planning matters
By Connie L. Oakes, owner of Oakes Tax Service, LLC and Financial Solutions
Year-end tax planning is not a luxury reserved for people with accountants on retainer. It is a handful of decisions, made before December 31, that determine what you owe — or keep — in April.
What it actually does
Done well, it helps you maximize deductions and credits, avoid surprises when filing, time income and expenses on purpose, and prepare for changes in tax law.
Five steps to take before December 31
Review your income and expenses. If you are close to a tax-bracket threshold, you may want to defer income or accelerate deductions.
Make charitable contributions. Donations to qualified charities made before December 31 can be deducted. Keep the receipts.
Use remaining Flexible Spending Account dollars on eligible medical, dental, and vision costs before they expire.
Contribute to retirement accounts such as an IRA or 401(k). The deposit helps your future and can lower this year’s taxable income.
Check for tax-law changes. Rules shift. If you are not sure what applies to you, ask — that conversation is part of the service.
A note for small business owners
If you run a business, consider purchasing needed equipment or supplies before year-end. Section 179 may let you deduct qualifying purchases in the year you place them in service, rather than depreciating them over time.