5 smart tax moves to make before the end of the year

The One Big Beautiful Bill Act has rewritten tax rules for millions of Americans, with many new provisions going into effect in 2026. However, some changes kick in for the 2025 tax year, and financial experts recommend being proactive now to strengthen your financial position.

But figuring out which changes actually affect you — and what to do about them before Dec. 31 — isn't always simple.

Here's what financial and tax advisors say you should prioritize before the clock runs out.

1. Front-load your charitable giving now — or lose the deduction later

This is the big one. Starting in 2026, taxpayers who itemize will lose deductions on the first 0.5% of their adjusted gross income given to charity.

"This is a critical and big change," said Nicolette Davicino, a certified financial planner and enrolled agent at Armstrong, Fleming & Moore in Washington, D.C. "Starting in 2026, the first 0.5% of AGI given to charity provides no tax benefit for itemizers."

If your AGI is $100,000, the first $500 you give won't be deductible. At $200,000 AGI, that's $1,000 of giving that provides no tax benefit.

So what can you do? Bunch multiple years of charitable donations into 2025 through a donor-advised fund (DAF), said Drew Lunt, founder and advisor at Scratch Capital in Boise, Idaho.
“You get a large deduction in the contribution year, removal of appreciated assets from your taxable account, growth potential inside the DAF and flexibility to give to charities over time," Lunt said. "This is especially powerful after a business sale or large capital gains event.”

Contributing appreciated securities rather than cash helps you avoid capital gains taxes on the appreciation while still getting the full deduction, he added.

Non-itemizers get a consolation prize: a new above-the-line deduction of $1,000 for individuals or $2,000 for married couples filing jointly, though this only applies to public charities, not donor-advised funds or private foundations. “This should partially offset the floor for smaller donors,” Davicino said.

2. Harvest your tax losses — but don't wait until December

Since the tax law didn't change capital gains treatment, tax-loss harvesting remains a solid move. However, timing matters more than many investors realize.

“The OBBBA did not change capital gains treatment so existing tax-loss harvesting strategies still apply,” Davicino said. “By selling losing investments by Dec. 31, taxpayers can offset gains and up to $3,000 of ordinary income.”

But there's a catch: the wash-sale rule. You can't repurchase substantially identical stocks or securities within 30 days before or after a sale, or the loss gets disallowed.

Lunt echoed the importance of acting now.

"This is not a year-end exercise," Lunt said. "You need to watch markets throughout the year. In 2025, for example, markets were down roughly 20% by April 8, then bounced back significantly. Those who wait until December will miss a major opportunity."

3. Max out retirement accounts (and don't forget the HSA)

This advice never goes out of fashion, but it's worth revisiting your contribution levels before year-end, especially for older workers. Starting Jan. 1, 2026, new IRS rules go into effect requiring catch-up contributions be designated as after-tax Roth contributions. This means older workers who make catch-up contributions will owe more in taxes than they would under current rules.
For 2025, you can contribute up to $23,500 to your 401(k), or up to $31,000 if you're 50 or older. Workers who are 60 to 63 years old have a higher catch-up contribution limit of $11,250.

"A lot of people will set it and forget it, especially with employer plans, and the plans increase," said Brian Colvert, a certified financial planner and owner of Bonfire Financial in Colorado Springs, Colorado. "Most people don't know about the super catch-up this year for individuals [ages 60 to 63]. Look at your plan and say, 'Hey, can I put more in?' You still have time."

Health savings accounts deserve special attention, too. "The HSA is probably one of my favorites, just because it is triple-tax exempt," Colvert noted, referring to the tax deduction on contributions, tax-free growth and tax-free withdrawals for qualified medical expenses.

The law expanded eligible HSA expenses to include telehealth and direct primary care arrangements, making these accounts even more valuable for future healthcare costs. Since the tax law made rates permanent, there's less uncertainty when deciding between traditional and Roth contributions, Davicino said.

4. Consider prepaying property taxes (if you're in a high-tax state)

The state and local tax (SALT) deduction cap quadrupled from $10,000 to $40,000 for 2025 through 2029, benefiting residents of high-tax states who itemize.

But there's a big catch. "Your very high earners are going to get phased out, and they're not going to get the full benefit," Colvert said. The deduction phases out after you exceed certain income thresholds — $500,000 for joint filers.

"It's a very small niche that actually is going to fall into the parameters that can actually take this benefit and actually qualify for it," he added. Many people on the high-income side will exceed the phase-out, while those under the threshold won't have enough deductions to itemize anyway.

Still, if you're in that sweet spot, consider prepaying 2026 state and local taxes in 2025 to maximize the deduction while it's available at the higher cap, Davicino suggested. The standard deduction also increased to $15,750 for single filers and $31,500 for joint filers, meaning fewer people will benefit from itemizing at all.

5. Don't forget annual exclusion gifts

The annual gift exclusion allows you to give up to $19,000 per recipient without eating into your lifetime estate exemption. Beginning in 2026 under the OBBB, the exemption increases to $15 million per person, or $30 million for couples.

"Chipping away at the estate each year doesn't seem like much in the short run, but over decades, it creates meaningful results," Lunt said.

While the higher estate exemption means less pressure for complicated estate planning for many families, annual gifting remains a powerful tool. The deadline is Dec. 31, though; gifts made on or after Jan. 1 count toward next year's exclusion.

The bottom line

Although many of the tax bill’s new provisions don’t go into effect until 2026, there are still moves you can make before the sun sets on 2025 to minimize your tax burden to Uncle Sam.

The most time-sensitive action? Charitable giving for itemizers, followed by tax-loss harvesting and maxing out retirement contributions.

Everything else can wait, but it’s a good idea to speak to a qualified tax professional before the new year filing rush to get advice specific to your situation and goals.