As 2025 winds down, the IRS clock is ticking. The financial landscape looks different than it did even a year ago—especially with the sunset of several 2017 Tax Cuts and Jobs Act provisions approaching in 2026. That means now’s the moment to take control of your taxable income, deductions, and credits before they potentially shrink.
Year-end Tax Hacks That Will Move Money in 2026
1. Max Out Retirement Accounts While You Can
The easiest tax win? Contribute as much as possible to your 401(k), 403(b), or IRA before December 31.
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For 2025, contribution limits are $23,000 for 401(k) plans (with an extra $7,500 catch-up for those 50 and older) and $7,000 for IRAs.
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Every dollar you put in lowers your taxable income.
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Don’t forget Roth conversions—tax now, tax-free later—especially if you expect rates to rise in 2026.
Pro tip: If your employer matches your 401(k), leaving that money on the table is like turning down a free raise.
2. Spend Your FSA or Lose It
Flexible Spending Accounts (FSAs) are “use-it-or-lose-it.” Check your balance before year’s end and spend any remaining funds on eligible medical or dependent care expenses.
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Eyeglasses, dental visits, and even sunscreen count.
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Some employers allow a small rollover ($640 max for 2025), but most don’t.
Don’t confuse FSAs with HSAs, which roll over and grow tax-free. (See our related post: HSA vs FSA: Which Is Right for You?)
3. Charitable Giving Still Pays Off
Whether you itemize or not, charitable donations can trim your tax bill and boost your community.
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Donating appreciated assets (like stocks) helps you avoid capital gains taxes while still deducting the full market value.
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If you’re close to the standard deduction threshold, “bunching” donations into one year can push you over and unlock deductions.
Tip: Keep digital receipts—most charities now provide IRS-ready documentation.
4. Harvest Investment Losses
“Tax-loss harvesting” sounds fancy but it’s basically using losing investments to offset your winners.
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Sell investments that are down to offset gains elsewhere in your portfolio.
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You can deduct up to $3,000 in capital losses annually beyond that.
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Just remember the wash-sale rule: don’t rebuy a “substantially identical” security within 30 days.
If you use an app like Monarch Money (affiliate link), it can help track your gains, losses, and overall portfolio health automatically.
5. Check Your Withholding and Estimated Taxes
Nobody likes surprise tax bills. Use the IRS’s Tax Withholding Estimator to make sure you’ve withheld enough for the year.
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Freelancers should double-check quarterly estimated payments.
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If you’ve had major life changes—new job, marriage, side hustle—adjust your W-4 before January.
6. Plan Ahead for 2026 Tax Changes
The 2017 Tax Cuts and Jobs Act provisions expire in 2026 unless Congress acts. That means:
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Higher tax brackets could return.
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The standard deduction may shrink.
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The child tax credit and estate tax exemption could roll back.
Strategize now—consider accelerating income or deductions before these changes kick in.
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Financial Disclaimer
This content is for educational purposes only and does not constitute financial or tax advice. Always consult a licensed tax professional or certified financial planner before making financial decisions.
3 Comments
I like how this breaks down year-end moves into simple steps. It makes tax planning feel more approachable going into 2026.
Very helpful article. It’s easy to overlook these tax strategies, and this does a good job showing how small moves now can add up later.
This was a great reminder to review finances before the year ends. The tax tips are explained clearly and feel doable, not overwhelming