Tax Planning Strategies to Reduce Your 2025 Tax Bill

Tax planning is a year-round process that can help individuals and business owners make informed financial decisions.

Tax planning is a year-round process that can help individuals and business owners make informed financial decisions. While tax laws change, there are some general strategies that may be useful in reducing tax liability.

Maximizing Retirement Contributions:
Contributing to tax-advantaged accounts such as a 401(k) or IRA may help reduce taxable income. For those eligible, Roth conversions may also be a strategy to consider, depending on tax circumstances.

Charitable Giving:
Charitable donations, when properly structured, may provide tax benefits. Options such as donor-advised funds allow individuals to make contributions while potentially spreading deductions over multiple years.

Timing Income and Deductions:
Some individuals and businesses may have the flexibility to defer income or accelerate deductions. Understanding how these decisions impact tax brackets is an important factor when evaluating options.

Tax planning should be tailored to individual financial situations. Consulting with a financial professional and tax advisor may provide insight into specific strategies that align with long-term goals.