It’s January 2026, and you’re staring down your 2025 tax records. The good news? Many powerful year-end moves from 2025 can still help reduce what you owe (or boost your refund) when you file this spring. The bad news? If you skipped them last December, some opportunities are gone—but others can be adjusted, and reviewing them now prevents bigger headaches next year.
The One Big Beautiful Bill Act (OBBBA) reshaped 2025 taxes with higher standard deductions, expanded credits, new vehicle loan interest deductions, and more. Combined with inflation-adjusted brackets and limits, 2025 was a prime year for smart planning.
Here’s your no-fluff 2025 Year-End Tax Checklist—the moves that mattered most. Score yourself: How many did you knock out? Comment below with your “score” and biggest takeaway—let’s see who’s ahead!
1. Max Out Retirement Contributions
Did you push your 401(k) to the 2025 limit of $23,500 (plus $7,500 catch-up if 50+)? Or your IRA to $7,000 ($8,000 catch-up)? Contributions made by Dec. 31, 2025 (or April 15, 2026 for IRAs) directly cut taxable income. If you fell short, calculate the missed savings—many people leave thousands on the table. Pro tip: Roth conversions before year-end could have locked in lower rates under the new landscape.
2. Harvest Capital Losses to Offset Gains
Review your brokerage statements: Sell losers by Dec. 31 to offset capital gains (and up to $3,000 of ordinary income). Long-term rates stayed at 0%/15%/20% in 2025, but short-term hits ordinary brackets (up to 37%). With market volatility, this was a golden window—did you take it? Unused losses carry forward forever.
3. Bunch Charitable Donations for Itemizing
If you’re close to itemizing (standard deduction jumped in 2025 under OBBBA), bundle donations into one year. Donor-advised funds make this easy. The new rules also opened doors for certain vehicle-related deductions—check if any qualified.
4. Review and Adjust Estimated Tax Payments
Avoid underpayment penalties by ensuring your 2025 withholdings or quarterlies covered 90–110% of your liability (depending on AGI). Late 2025 was the time to bump up W-4 withholdings or make a big Q4 payment.
5. Organize Records Early—New Reporting Rules Hit Hard
2025 brought stricter 1099-K rules for payment apps (Venmo, PayPal, etc.) and online sales. Gather everything now: Forms 1099s started arriving in January. Missing docs = headaches and potential audits.
6. Consider Roth Conversions or Recharacterizations
With brackets adjusted and potential future changes, converting traditional to Roth in a lower-income 2025 year could save big long-term. Deadline was Dec. 31—no do-overs.
7. Maximize the Child Tax Credit and Other Family Breaks
OBBBA expanded credits in 2025—review eligibility for kids, dependents, or education credits. If you had qualifying expenses, claim them fully.
8. Gift Strategically (Annual Exclusion)
You could gift up to $19,000 per person in 2025 without touching lifetime exemption. This reduces your estate while helping family—did you use it?
9. Accelerate or Defer Business Expenses (If Self-Employed)
Deductible expenses (equipment, supplies) pushed into 2025 lowered taxable income. QBI deduction was still key—optimize wages and structure.
10. Run the Numbers on New OBBBA Deductions
Vehicle loan interest deduction (for qualified purchases), SALT tweaks, and more—did these apply to you? Many filers overlook them until tax software flags it too late.
Quick Self-Audit:
• How many of these 10 did you complete in 2025?
• Which one surprised you most?
• What’s your top priority for 2026 planning?
Drop your thoughts in the comments—I read and reply to every one! If this checklist saved you stress (or money), share it with a friend who files their own taxes.
Ready for more? Subscribe for weekly tax tips, and follow me on X for daily TTOTD (Tax Tip of the Day). Next up: How the 2026 filing season changes everything under the new rules.
Stay sharp—taxes never sleep. 💡
Leave a Reply