Fall is officially here, and depending on where you live, you might be saying goodbye to pool days and hello to raking leaves. Whatever the average temperature outside, it’s the perfect time to start thinking about taxes.

This might seem like a good way to ruin the last of your summer vibes, but trust us: you want to give yourself plenty of time to make smart moves now so you’re not scrambling in December when everyone else is frantically Googling “last-minute tax deductions.”

Why Start Tax Planning Now?

Tax planning works best when you’re proactive. By tackling it now, you’ll avoid year-end stress and rushed decisions and give yourself time to gather documentation so you don’t miss out on credits and deductions.

Plus, some tax planning strategies work best if you plan ahead. Here are a few to consider.

Charitable Giving

Thinking about donating to a favorite charity? Planning helps you decide how much to give, when to give it, and how to structure it.

For example, if you’re close to the threshold for itemizing deductions, a well-timed gift could push you over the line. Or, if you’re taking required minimum distributions (RMDs) from your retirement accounts, you might consider making a Qualified Charitable Distribution (QCD). That way, you satisfy your RMD without having to include it in your taxable income.

Invest in Business Growth

If you need new equipment, software, or furniture for your business, the beginning of fall is the best time to decide whether to make those purchases this year or next. Thanks to 100% bonus depreciation brought back by the One Big Beautiful Bill Act (OBBBA), you may be able to deduct the full cost in the year you put the asset into use.

Of course, don’t buy equipment just for the sake of a tax write-off. Spending a dollar to save a few cents in taxes isn’t a winning strategy. But if you genuinely need the asset, accelerating the purchase this year could make sense and give you the deduction (and corresponding boost to your cash flow) sooner.

Medical Expenses

If you’ve had a year filled with medical bills or expect some before year-end, you may want to look at the 7.5% of adjusted gross income rule. Only expenses above that threshold are deductible on your individual tax return, so it might make sense to schedule elective procedures or stock up on prescriptions this year to maximize your deduction.

It’s not the most fun way to plan, but the tax savings can take the sting out of those doctor visits.

Max Out Retirement Contributions

Retirement may feel far away, but your contribution deadlines aren’t. Now’s the time to check your 401(k) or IRA contributions. Can you bump them up to the max?

For 2025, you can contribute:

• $23,500 to a 401(k), 403(b), or governmental 457 plan ($31,000 if you’re age 50 or older)
• $7,000 to a traditional or Roth IRA ($8,000 if you’re age 50 or older)
• $16,500 to a SIMPLE IRA ($20,000 if you’re age 50 or older)
• $70,000 to a SEP IRA (contribution amount is dependent on business profits and compensation)

Even small increases can add to a nice nest egg for retirement. Some contributions also offer tax savings today, which is a nice bonus.

Home Energy Credits

The One Big Beautiful Bill Act is phasing out several green energy tax credits established by the Inflation Reduction Act.

However, if you installed energy-efficient windows, doors, or solar panels or purchased an electric vehicle this year, you still have an opportunity to benefit from those tax credits.

Here’s a look at the available credits and the timeline for repeal:

Credit Name	Date Repealed
Previously Owned Electric Vehicle Credit	After September 30, 2025
Clean Vehicle Credit	After September 30, 2025
Commercial Electric Vehicle Credit	After September 30, 2025
Energy Efficient Home Improvement Credit	After December 31, 2025
Residential Clean Energy Credit	After December 31, 2025
Refueling Property Credit	After June 30, 2026
New Energy Efficient Home Credit	After June 30, 2026
Energy Efficient Commercial Buildings Deduction	After June 30, 2026

Keep in mind that you’ll need documentation to claim those energy credits when filing your taxes. Gather receipts, certifications, and installation records now, while they’re easy to find.

Other Smart Moves to Consider

Beyond the big-ticket strategies, there are plenty of smaller moves that can still pack a punch when it comes to reducing your tax bill. Here are a few to discuss with your tax advisor.

• Review your withholding. A quick check ensures you’re not overpaying or underpaying taxes through your paycheck. Updating your withholding can be especially beneficial if you qualify for the new deductions for tips and overtime income.
• Harvest investment losses. If some investments aren’t performing well, you might be able to sell the underperformers and use those capital losses to offset capital gains.
• Check estimated tax payments. Business owners, freelancers, and other taxpayers with income that isn’t subject to withholding must make estimated tax payments throughout the year. Now is a good time to estimate your tax bill for the year and ensure your estimated payments are enough to avoid penalties or surprise tax bills next April.
• Review Flexible Spending Account (FSA) balances. If you have a flexible spending account at work, ensure you’re on track to use the funds before year-end (or before the post-year-end grace period, if your plan offers one), so nothing goes to waste. Health Spending Accounts (HSAs) don’t have the same use-it-or-lose-it rules.
• Accelerate deductions and defer income. If your cash flow allows, consider paying certain expenses early, such as upcoming bills or professional fees, to increase your deductions this year. If your business operates on a cash basis, you may also be able to postpone income to next year, pushing the tax liability to next year along with it.

Prepare for a Smooth Year-End

Tax planning doesn’t have to be complicated. In fact, it can make your life easier by giving you time to make adjustments and gather documentation well ahead of year-end.

Don’t let December sneak up on you like a surprise holiday fruitcake. Take action now, and you’ll thank yourself later.

If you’re ready to get started, contact NewWay Accounting. We help individuals and business owners plan ahead so taxes don’t become a last-minute headache. Contact us today to map out your tax strategy so you can head into year-end with peace of mind.