Time is ticking, but it's not too late to make some savvy tax moves before the year ends! While some opportunities have slipped away, there are still strategic steps you can take in the final days of 2025 to potentially boost your refund or reduce your tax burden. But here's where it gets interesting: not all tax moves have the same deadline, and some can even be made into early 2026. For instance, contributions to pre-tax individual retirement accounts (IRAs) or health savings accounts (HSAs) can be made up until the tax filing deadline next year. However, most other strategies need to be executed by December 31 to count for 2025, so timing is crucial—especially with holiday trading hours complicating matters.
And this is the part most people miss: President Donald Trump’s "big beautiful bill" from 2025 could mean bigger tax refunds for many in 2026. Since the IRS didn’t update withholding tables after the law passed, some workers might see a pleasant surprise when they file their taxes. But don’t wait for that—take action now! Here are some last-minute strategies financial experts recommend.
Tax Loss or Gain Harvesting: A Double-Edged Sword
One classic year-end move is tax-loss harvesting, where you sell underperforming assets to offset gains in your portfolio. If your losses exceed your gains, you can even deduct up to $3,000 from your regular income. But with the S&P 500 up nearly 17% as of December 22, many investors might not have losses to harvest this year. Controversially, some experts suggest flipping the script with 'tax-gain harvesting' for those in lower tax brackets. If your income falls within the 0% capital gains bracket, selling profitable assets could allow you to diversify or take profits without triggering a tax bill. It’s a bold move, but could it be the right one for you?
Roth Conversions: A Quick Win or a Long Setup?
Another popular strategy is converting traditional IRA funds to a Roth IRA for tax-free future growth. However, this move requires careful planning, as you’ll owe taxes on the converted amount upfront. Many advisors wait until year-end for more accurate income projections. According to CFP Judy Brown, the process can be surprisingly quick if you already have a Roth IRA set up. "We pick the highest-appreciated funds and do an in-kind conversion—it’s good the next day," she explains. But if you’re starting from scratch, setting up the account could be the biggest hurdle.
Final Thoughts: Act Now, But Think Strategically
With the clock ticking, now’s the time to decide which moves align with your financial goals. Whether you’re harvesting losses, gains, or converting to a Roth IRA, the key is to act before December 31. But here’s a thought-provoking question: Are these strategies truly one-size-fits-all, or do they favor certain income brackets and investment profiles? Share your thoughts in the comments—we’d love to hear your take!
