Are you looking to strategically lower your tax burden for 2025? We understand the importance of proactive tax planning to minimize surprises and optimize your financial strategy. Here are key tax tips to consider before the end of the year.

1. Optimize Your Investment Portfolio
Capital loss carryforwards can play a crucial role in your tax strategy as they do not expire. Evaluate the potential benefits of utilizing any large capital loss carryforwards you have. Additionally, if you have substantial capital gains in the current year, explore opportunities for tax loss harvesting in collaboration with your tax and investment advisors.

2. Diversify Your Retirement and Investment Accounts
Well-diversified accounts, including traditional and ROTH IRAs as well as 401ks, can significantly reduce your tax liability for 2025. Depending on your income limits, you may be eligible for tax credits or deductions for your contributions. Keep in mind that making a traditional IRA contribution and taking a deduction is possible until April 15, 2025.

3. Leverage Health Savings Accounts (HSAs)
Consider contributing to an HSA, with individual coverage allowing up to $4,150 and family coverage up to $8,300. You have until the federal tax filing deadline of April 15th to contribute for the previous year. Explore how HSAs can serve as a powerful retirement tool, particularly for individuals with minimal annual medical expenses.

4. Maximize Child Tax Benefits
If you have children, it’s essential not to overlook potential tax credits and deductions, including the child tax credit, earned income tax credit, child and dependent care tax credit, and education tax credits and deductions. Each of these benefits has distinct phaseout income and age limits, emphasizing the need to consult your tax advisor for personalized assistance.

How Keystone CPAs Can Assist You

These tax tips offer a glimpse of the comprehensive assistance we provide. At Keystone CPAs, we recognize that the intricacies of the tax code can be perplexing. Our team is dedicated to working with you to gain a clear understanding of your tax situation and develop a customized tax strategy to minimize your tax burden not only for the current year but also for the future. Contact us online to schedule a consultation, or reach out using the contact information below.

With our expertise and proactive approach, let’s together pave the way for a tax-efficient and financially optimized 2025.

Connect with us for a personalized tax planning consultation at Keystone CPAs.