Start Your Year-End Tax Planning Now: Tips for Individuals and Business Owners

As the final quarter of the year rolls in, many people start thinking about holidays and New Year’s resolutions, but smart taxpayers are thinking about one more thing: TAXES.

Now is the perfect time to start your year-end tax planning. Whether you're a small business owner or an individual taxpayer, the actions you take between now and December 31st could significantly reduce your tax bill, boost your financial health, and set you up for success in the coming year.

Here’s what you need to know to take full advantage of year-end tax planning opportunities and how Harrison’s Tax and Consulting can help.

Why Year-End Tax Planning Matters

Waiting until tax season to think about your taxes is like trying to plant seeds in winter. Many of the best strategies must be implemented before the year ends, not after. Year-end planning helps you:

• Maximize deductions and credits

• Reduce taxable income

• Avoid penalties for underpayment

• Make informed financial decisions before deadlines hit

Tips for Individual Taxpayers

1. Review Your Withholding

Did you owe taxes last year or get a big refund? Adjust your W-4 now to fine-tune your withholding and avoid surprises come April.

2. Max Out Retirement Contributions

Pre-tax contributions reduce your taxable income.

3. Take Advantage of Charitable Giving

Donations made by December 31 can be deducted if you itemize. Consider giving appreciated assets to avoid capital gains.

4. Use Your FSA or HSA Funds

Flexible Spending Accounts are typically “use it or lose it.” Be sure to spend those dollars on eligible medical expenses before year-end.

5. Consider a Roth Conversion

If your income is lower this year, converting traditional IRA funds to a Roth IRA may reduce your long-term tax burden.

Tips for Small Business Owners

1. Review Your Books

Before anything else, make sure your books are up to date. Accurate records are the foundation of good tax planning.

2. Defer or Accelerate Income

If you expect to be in a lower tax bracket this year, consider accelerating income and deferring expenses. If next year’s income will be lower, do the opposite.

3. Make Asset Purchases

Take advantage of Section 179 and bonus depreciation by purchasing qualifying equipment or vehicles before year-end.

4. Set Up or Contribute to a Retirement Plan

Options include:

• SEP IRA

• SIMPLE IRA

• Solo 401(k)

These allow you to save for retirement while reducing taxable income.

5. Consider a Tax Strategy Session

A year-end planning meeting with your tax professional can uncover opportunities specific to your industry, income, and goals.

 Common Mistakes to Avoid

• Procrastinating: Many strategies must be done by December 31st—waiting too long may eliminate your options.

• Ignoring estimated tax payments: Avoid underpayment penalties by making your Q4 payment by January 15th.

• Assuming you’ll “catch up” during tax season: Tax prep season is about reporting, not planning.

How Harrison’s Tax and Consulting Can Help

At HTC, we specialize in proactive tax planning for individuals, entrepreneurs, and nonprofits. Our team will:

• Review your current tax situation

• Identify last-minute deductions and credits

• Build a strategy that aligns with your financial goals

• Keep you compliant and prepared for filing season

Don’t wait until January. Schedule your year-end tax planning session today!

Year-end tax planning isn’t just a smart move, it’s a money-saving one. Whether you’re an individual taxpayer or a small business owner, taking action now could mean a smaller tax bill, more deductions, and a stronger financial start to 2026.

Let’s make it happen together.

Book your year-end tax planning session with HTC now ➜ www.harrisonstaxconsulting.com