Most people wait until April to think about their taxes. By then, it’s too late.
April is for filing taxes. December is for saving on them.
December 31 is the single most important deadline in personal finance. Once the clock strikes midnight, the strategies that save you the most money disappear for the year.
The problem is that taxes can be super confusing, and most generic advice doesn't tell you exactly what to execute right now.
Here is your focused checklist of the 7 things you must review before year-end.
1. Tax Loss Harvesting
If you sold investments for a profit this year, you owe capital gains tax (sorry). The simplest way to reduce that bill is to sell other investments that are currently down.
The Strategy: Sell losers to offset winners dollar-for-dollar.
The Watch-out: Don't buy the exact same security back within 30 days (the "wash sale" rule).
Note: This is something the Fulfilled platform handles automatically. Try it out for free here: www.FulfilledWealth.co
2. Maximize the Gift Tax Exclusion
You can gift up to $19,000 to anyone this year without touching your lifetime exemption ($38,000 for married couples).
The Move: Fund a 529 plan for a child’s education or gift appreciated stock to transfer wealth tax-efficiently.
3. "Bunch" Your Itemized Deductions
If you are close to the threshold for itemizing deductions rather than taking the standard deduction, consider "bunching."
The Move: Prepay mortgage interest, property taxes, or charitable gifts now to push your total deductions over the limit for 2025.
4. Complete Charitable Giving
If you donate cash, you miss a trick.
The Move: Donate appreciated assets (like stock). You avoid the capital gains tax you’d pay if you sold it, and the charity gets the full amount.
Pro Tip: Use a Donor Advised Fund (DAF). Donate now to get the 2025 tax break, but distribute the funds to charities later on your own timeline.
5. Roth Conversions
Did you have a low-income year? (e.g., went back to school, between jobs).
The Move: Convert pre-tax retirement funds to a Roth IRA. You pay taxes on the conversion now (while your rate is low) so that money grows tax-free forever.
6. Business Owner Sprint
If you have self-employment income, this is your Super Bowl.
The Move: Prepay 2025 business expenses now to lower this year's taxable income. Set up a Solo 401k before Dec 31 to unlock massive contribution limits.
7. Empty Your FSA
The Move: Buy eligible supplies, refill prescriptions, or book vision/dental appointments. Don’t let your money evaporate.
Finish strong
Close out 2025 by getting ahead on 2026.
Save some cash and crush your financial goals.
Let’s do this.
