How to Lower Your Tax Bill Before Year-End

It’s only summer, but now is the time to act if you want a lower tax bill come April.
The truth is, most of the strategies that actually reduce your tax liability need to be done before the year ends, not during tax season. That’s where smart planning and the right guidance make all the difference.

For Business Owners:

  • Accelerate expenses: Prepay vendor invoices, stock up on supplies, or invest in needed equipment.

  • Defer income: If you’re on a cash basis, pushing late-year invoices into January may lower your current year’s taxable income.

  • Maximize retirement contributions: A SEP IRA or Solo 401(k) contribution can make a significant dent in your tax bill.

  • Filing the previous year due tax return in the current year as early as possible provides more runway for planning in the current period.

  • Have your financial statements cut off at the end of each month. Having correctly stated financial statements allows for accurate computations.

  • Lastly, have a projection for the current period. This is especially true if you have a seasonal business. This also allows for a more accurate tax planning computation.

For Individuals:

  • Adjust your W-4 or make an estimated payment: Avoid underpayment penalties and unexpected balances.

  • Harvest investment losses: Selling underperforming assets can offset taxable gains.

  • Use your HSA or FSA: Pre-tax contributions to these accounts reduce your adjusted gross income—and provide tax-free ways to pay for qualified expenses.

Other Smart Moves:

  • Charitable giving: Donating appreciated stock or making a qualified charitable distribution (QCD) can benefit both your finances and the causes you care about.

  • Review your deductions: If you're close to itemizing, bunching deductible expenses (medical bills, charitable donations, etc.) into one tax year can make a real difference.

What You Can Do Now
These strategies only work if they’re implemented before December 31st—and many require professional guidance to tailor them to your unique situation. That’s where we come in. Our team works with individuals and business owners to identify proactive tax strategies early, ensuring you stay organized, in control, and well-positioned for year-end.

Taylor Alva