Zerohedge: Unlock Tax Savings: 5 Year-End Strategies Revealed (Article)

Summary for: Article: Zerohedge: Unlock Tax Savings: 5 Year-End Strategies Revealed Source: https://www.zerohedge.com/personal-finance/five-tax-moves-make-december-31-most-people-miss Did you know that the best tax-saving moves for the year often require action before December 31st? This year-end tax planning guide highlights five key strategies to reduce your tax bill. First, maximize your retirement contributions, such as 401(k)s and IRAs, which can significantly lower your taxable income. For 2026, 401(k) limits are $23,500, plus $7,500 for those 50 and older. Second, practice tax-loss harvesting by selling investments at a loss to offset capital gains or up to $3,000 of ordinary income annually. For example, harvesting $8,200 in losses saved the author nearly $2,000. Third, make strategic charitable contributions, especially donating appreciated stock to deduct its full market value while avoiding capital gains tax. Fourth, use your Flexible Spending Account (FSA) funds before they expire, typically on December 31st, as unused money is forfeited. Finally, review and adjust your tax withholding to ensure it closely matches your actual tax liability, avoiding penalties or giving the government an interest-free loan. Procrastination is the biggest pitfall; start planning in October to execute moves by mid-December.