Before the calendar turns to a new year, it’s worth reviewing your finances. Some year-end moves can help reduce your tax burden while supporting your bigger financial goals. Whether you’re a full-time employee, have a side hustle, or are focused on building long-term savings, taking action before year-end can help you keep more of your money and prepare for the year ahead.
Review Your Tax Withholding
If you’ve experienced a major life change this year, such as getting married, changing jobs, or adding a second source of income, review your tax withholding. Adjusting now can help reduce surprises when you file your return.
Don't Forget About Side Hustle Income
Freelance work, online selling, rideshare driving, and other side gigs can create tax obligations that aren’t covered through payroll withholding. Review your income and expenses before year-end and consider whether you need to make an estimated tax payment.
Maximize Retirement Contributions
Contributing to a workplace retirement plan or an eligible self-employed retirement account may help lower your taxable income while strengthening your long-term financial future. Year-end is a good time to review how much you’ve contributed and whether you can save more before the year ends.
Take Advantage of Tax-Advantaged Accounts
Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) can offer valuable tax benefits. Review contribution opportunities and account balances before any applicable deadlines so you can make the most of these accounts.
If you want to learn more about HSA accounts, Honor can help.
Review Investments and Capital Gains
Year-end is often a good time to evaluate taxable investment accounts. Some investors use investment losses to offset capital gains, a strategy known as tax-loss harvesting. Be sure any investment decisions align with your overall financial goals, not just potential tax savings. If you’d like guidance on investment strategies and long-term financial planning, Honor Investment Services offers access to financial professionals who can help you evaluate your options.
Organize Tax Documents Early
Gathering receipts, income records, and tax documents before January can make filing easier and help ensure you don’t overlook deductions or important information. This is especially valuable for anyone managing multiple income streams.
Use Year-End Planning as a Financial Checkup
Tax planning and financial planning often go hand in hand. Before the year ends, review your savings goals, emergency fund, retirement contributions, and overall financial progress. Small adjustments today can create long-term benefits down the road.
End the Year on a Strong Financial Footing
The weeks leading up to December 31 offer a valuable opportunity to take control of your finances. By reviewing your taxes, savings, and investment strategies now, you can enter the new year with greater confidence and a clearer financial plan.
Build a Stronger Financial Future
Smart tax planning is just one piece of a healthy financial strategy. Explore savings options designed to help you grow your money and support your long-term financial goals.