As we close out the year, now's the perfect time to take stock of your finances and set yourself up for a smoother tax season. Here are a few key moves to consider before the clock runs out on December 31st:

1. Max Out Employer Sponsored Tax-Advantaged Accounts

If you’ve got a 401(k), IRA, or HSA, now’s the time to double-check your contributions. Not only are you saving for your future, but you’re also lowering your taxable income for the year. For 2024, the 401(k) limit is $23,000 (or $30,500 if you’re over 50). Are you leaving free money on the table? If your budget allows, top it off! It’s important to note employer sponsored 401k’s have until year end for 2024 contributions while Traditional and Roth IRA’s, along with HSA’s have until the tax filing deadline to contribute for tax year 2024.

2. Review Your Deductions

Charitable giving is not just good for the soul; it’s good for your taxes too. Donate to your favorite causes or clean out that garage and give away items in good condition to a qualified charity. Just remember to keep those receipts handy—you’ll need them come tax time.

3. Harvest Losses (or Gains)

If you’ve got some investments that haven’t performed well, consider selling them to offset gains in other areas. Known as tax-loss harvesting, this strategy can help minimize your capital gains tax. On the flip side, if you’re in a lower tax bracket this year, it might make sense to realize some gains while your rate is lower.

4. Check In on Your Withholdings

Under or overpaying taxes throughout the year can feel like playing defense when you should be on offense. Look back at your pay stubs and make sure your withholdings are on point for 2024. If you’ve had major life changes (marriage, new baby, new business), it’s especially important to make adjustments.

5. Talk to Your Advisor or CPA

Look, taxes are complicated. There’s no shame in bringing in a coach to help you navigate the nuances. Whether it’s your CPA, financial advisor, or both, getting a pro’s perspective can save you time, stress, and potentially big bucks.

Remember, the best plays are the ones you prepare for in advance. Let’s make this year-end sprint work for you so you can start 2025 ahead of the game! If you’ve got questions about how to tackle your taxes—or want to chat about your 2024 financial goals—reach out.