Here’s what you still have time to do
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As the calendar draws to a close, there’s still time for certain year-end tax moves, but experts say investors need to act quickly.
with Tax season is fast approachingthese tactics can increase your refund or reduce the taxes you owe, depending on what you’ve already paid.
However, most planning moves must be made by December 31 to count towards 2025. Some exceptions include pre-tax individual retirement account or health savings account contributions that can be made through the 2026 tax deadline.
Note that timing may be difficult due to the shortened trading day on Christmas Eve, major stock exchanges being closed on Christmas Day, and the holiday hours of some financial firms.
Many taxpayers could see larger tax refunds in 2026 due to changes made in 2025 through President Donald Trump’s “big, beautiful bill.” IRS did not update withholding tables Experts say that employers may benefit from this practice after the law comes into force, and many workers may benefit from it during the tax season.
With limited time left until December 31, here are a few last-minute tax strategies to consider, according to financial experts.
Tax loss or gain harvesting
A popular end-of-year move: tax loss harvesting, or selling lost brokerage account assets to offset portfolio gains on your tax return. If investment losses exceed profits, you can reduce your regular income by up to $3,000 per year by using the excess.
However, S&P 500 Experts say many investors will not experience 2025 brokerage account losses, up nearly 17% year-to-date as of Dec. 22.
Instead, investors in lower tax brackets may consider so-called “tax gain harvesting,” which involves strategically selling profitable assets. If your taxable income falls within the 0% capital gains range, you can diversify your portfolio or take profits without triggering a tax bill.
Either way, there’s still enough time to reap losses or gains before the end of the year, depending on your investments.
“There’s a reason why New Year’s Eve is a full trading day,” said certified financial planner Michael DeMassa, founder of Forza Wealth Management in Sarasota, Florida. “It doesn’t matter if a deal is reached as long as there is a trade date [Dec. 31]in the calendar year.”
Year-end Roth conversions
Another popular year-end strategy is Roth individual retirement account conversions with pre-tax transfers, or non-deductible IRA funds a Roth IRA To start growing tax-free in the future.
However, income projections are important because you will owe upfront taxes on the converted balance. Many advisors wait until the end of the year for Roth conversions, when they have more accurate estimates for other earnings.
Depending on your Roth conversion strategy, this move could happen “pretty quickly,” according to CFP Judy Brown, who practices at C&H Group in the Washington, D.C. and Baltimore area.
“We pick the highest value funds out there and do an in-kind conversion, moving assets from one account to another without selling them,” he said. “The next day is good.”
But if you don’t have a Roth IRA set up to receive the funds, the process can take longer, said Brown, who is also a certified financial advisor: “Opening the accounts right now is probably the biggest hurdle.”
