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Tax professionals say individuals still have opportunities to meaningfully lower their 2025 tax burden before the year ends, The Wall Street Journal writes.
Unexpected income—whether from severance, inheritance or higher-than-projected earnings—can push taxpayers into larger bills than planned, but certain actions can help offset those obligations.
Maximizing contributions to retirement accounts remains one of the most effective strategies. Workers can increase 401(k) contributions through payroll adjustments in December, while solo business owners may leverage one-participant 401(k) plans to secure significantly higher deductions. IRA contributions are also available through April.
Charitable giving is another key tool. With new deduction limits set to take effect in 2026, itemizers may benefit from accelerating planned donations. Eligible retirees may also use qualified charitable distributions from IRAs to satisfy required minimum distributions without raising taxable income.
For investors, tax-loss harvesting can offset capital gains and reduce ordinary income liability—provided wash-sale rules are carefully observed.
