3 Tax Moves to Make Before Year-End (And Why Most People Wait Too Long)

By the time most people start thinking seriously about taxes, it’s already January and by then, roughly 90% of last year’s tax outcome is already locked in. Here are three moves worth making before December 31, not after.

1. Review your retirement contribution timing. Contribution limits and deadlines for 401(k)s and IRAs (IRC §401(k), §408) are easy to miss if you’re not tracking them proactively. Maximizing contributions before year-end can meaningfully reduce taxable income.

2. Revisit your entity structure. If you’re a 1099 earner or small business owner, an S-Corp election (IRC §1361) made or reviewed before year-end can change your tax exposure for the entire year — but only if it’s done in time.

3. Consider equipment or business purchases. Section 179 (IRC §179) allows qualifying business equipment purchases to be deducted in the year they’re placed in service a common move that only works if it happens before the calendar flips.

None of these require complicated tax shelters they just require a planning conversation before the deadline, not a filing appointment after it.