Maximizing Strategic Year-End Tax Planning — As the year ends, taxpayers have an important chance to review their finances and make moves that can lower their 2025 tax bill. With the state and local tax (SALT) deduction limit increasing from $10,000 to $40,000, more people may benefit from prepaying state taxes before year-end—especially those who itemize deductions.
If your income has increased in 2025, confirm your estimated payments and withholdings match your expected liability. Adjusting year-end withholdings can help avoid penalties since these are treated as paid evenly throughout the year. It’s also a good time to maximize retirement contributions—401(k) and 403(b) limits are $23,500, plus catch-up options for those 50 and older. Taxpayers not covered by employer plans should review IRA or Roth IRA opportunities.
With the higher SALT limit, charitable gifts are more likely to provide a tax benefit. Consider a Qualified Charitable Distribution (QCD) from an IRA to give directly to charity while lowering taxable income. Those turning 73 in 2025 must take required minimum distributions to avoid penalties, and families can make tax-free gifts up to $19,000 per person ($38,000 per couple) before year-end.
Year-end planning isn’t just about closing out this year—it’s about setting up for success in the next. Reviewing your goals and acting strategically now can help maximize savings and position you for a strong start in 2026.
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Maximizing Strategic Year-End Tax Planning — As the year ends, taxpayers have an important chance to review their finances and make moves that can lower their 2025 tax bill. With the state and local tax (SALT) deduction limit increasing from $10,000 to $40,000, more people may benefit from prepaying state taxes before year-end—especially those who itemize deductions.
If your income has increased in 2025, confirm your estimated payments and withholdings match your expected liability. Adjusting year-end withholdings can help avoid penalties since these are treated as paid evenly throughout the year. It’s also a good time to maximize retirement contributions—401(k) and 403(b) limits are $23,500, plus catch-up options for those 50 and older. Taxpayers not covered by employer plans should review IRA or Roth IRA opportunities.
With the higher SALT limit, charitable gifts are more likely to provide a tax benefit. Consider a Qualified Charitable Distribution (QCD) from an IRA to give directly to charity while lowering taxable income. Those turning 73 in 2025 must take required minimum distributions to avoid penalties, and families can make tax-free gifts up to $19,000 per person ($38,000 per couple) before year-end.
Year-end planning isn’t just about closing out this year—it’s about setting up for success in the next. Reviewing your goals and acting strategically now can help maximize savings and position you for a strong start in 2026.
Maximize Your Charitable Giving Impact — Why Charitable Giving Matters: While charitable giving starts as a generous act and a way to support causes you care about, it can also optimize your tax strategy. Thoughtful planning allows you to make a meaningful impact on your community while leveraging potential tax benefits. Understanding the rules and opportunities surrounding charitable contributions is essential for maximizing both your generosity and your financial strategy. Tax Deductibility Qualifications: To qualify for a tax deduction, contributions must meet a few key requirements—gifts must be irrevocable and not given in exchange for goods or services, donations must be made to a 501(c)(3) organization, and receipts or acknowledgments should be obtained for tax documentation. Whether you benefit from the deduction depends on whether you itemize or take the standard deduction. If your total deductions exceed the standard amount, charitable contributions can reduce your taxable income and lower your overall liability. Forms of Giving Beyond Cash: While cash contributions are the most common, there are many ways to give. Securities, stocks, and bonds can provide additional tax advantages. Charities may also accept personal property such as vehicles, art, jewelry, or real estate, and some are now accepting digital currency. Non-cash gifts generally require valuation and proper documentation, which can include appraisals for larger items. Donor-Advised Funds: Donor-advised funds (DAFs) are gaining popularity as a flexible, convenient way to manage charitable contributions. These funds allow you to make a large contribution in a single year, receive a tax deduction immediately, and decide later how to distribute funds to specific charities. The fund manages record keeping, ensuring proper receipts and eligibility verification, and reduces the administrative burden for donors. DAFs are also helpful for avoiding solicitation from multiple organizations after a gift is made. Recent Tax Law Updates: New tax legislation now allows taxpayers up to $1,000 per person ($2,000 for joint filers) to deduct charitable contributions even if they take the standard deduction. This change removes a common barrier to giving. For those who itemize, a new floor requires that the first 5% of adjusted gross income is not deductible, slightly limiting deductions for high-income donors. Overall, these updates create more opportunities for taxpayers to give meaningfully while planning strategically. Plan Thoughtfully to Maximize Impact: Understanding the nuances of charitable giving, whether through cash, non-cash gifts, or donor-advised funds, can make your contributions more effective while optimizing your tax strategy. Thoughtful planning ensures you support your chosen causes and leverage the benefits available under the current tax code. At Hantzmon Wiebel, our team helps you navigate these complexities so you can give confidently, maximize your impact, and stay aligned with your overall financial goals.
It Depends
Maximizing Strategic Year-End Tax Planning — As the year ends, taxpayers have an important chance to review their finances and make moves that can lower their 2025 tax bill. With the state and local tax (SALT) deduction limit increasing from $10,000 to $40,000, more people may benefit from prepaying state taxes before year-end—especially those who itemize deductions.
If your income has increased in 2025, confirm your estimated payments and withholdings match your expected liability. Adjusting year-end withholdings can help avoid penalties since these are treated as paid evenly throughout the year. It’s also a good time to maximize retirement contributions—401(k) and 403(b) limits are $23,500, plus catch-up options for those 50 and older. Taxpayers not covered by employer plans should review IRA or Roth IRA opportunities.
With the higher SALT limit, charitable gifts are more likely to provide a tax benefit. Consider a Qualified Charitable Distribution (QCD) from an IRA to give directly to charity while lowering taxable income. Those turning 73 in 2025 must take required minimum distributions to avoid penalties, and families can make tax-free gifts up to $19,000 per person ($38,000 per couple) before year-end.
Year-end planning isn’t just about closing out this year—it’s about setting up for success in the next. Reviewing your goals and acting strategically now can help maximize savings and position you for a strong start in 2026.
