Five Tax Moves to Make Before December 31 That Most People Miss

Don’t wait until tax season: Five moves to make before year-end that could cut your tax bill.

Act before December 31: These five tax moves can help you keep more of what you earn. Hadayeva Sviatlana/Shutterstock

Every January, I hear the same regret from friends and colleagues: “I wish I had known about that before the year ended.” Tax planning has a hard deadline, and most of the best strategies expire on December 31 with no extensions, no exceptions, and no do-overs.

I used to be one of those people who did not think about taxes until I sat down with a stack of documents in February. Then I started working with an accountant who taught me that tax planning is a year-round activity, and the moves you make in the final months of the year often have the biggest impact. Last year, the five strategies below saved me a combined $4,800 in taxes. None of them was complicated. All of them required acting before the calendar flipped.

Move One: Max Out Your Retirement Contributions

This is the single most impactful tax move available to most workers, and millions of people leave money on the table every year. For 2026, the 401(k) contribution limit is $23,500, with an additional $7,500 catch-up contribution if you are 50 or older. Every dollar you contribute to a traditional 401(k) reduces your taxable income dollar for dollar.