What should I do before December to lower my tax liability for this year? Need your tips ASAP!

You've still got time to make some strategic moves before year-end! Here are some things to consider: First, for your small business, look into making any planned business purchases now rather than in January. Equipment, supplies, or services paid for before December 31st can be deducted this year. Also, consider setting up a SEP-IRA or Solo 401(k) for your business income - you can contribute significantly more than just your workplace 401(k). For your personal taxes, your electric vehicle likely qualifies for the Clean Vehicle Credit (up to $7,500), and those energy-efficient home improvements might qualify for the Energy Efficient Home Improvement Credit. Keep all receipts and documentation! With a child in daycare, don't forget the Child and Dependent Care Credit. Make sure you're getting documentation from your daycare provider with their tax ID number. Charitable donations are still deductible, but only if you itemize deductions rather than taking the standard deduction. If you're close to the threshold where itemizing makes sense, consider "bunching" donations - making two years' worth of planned donations in a single tax year. Also look into contributing to a Health Savings Account (HSA) if you have an eligible high-deductible health plan, or funding a 529 college savings plan for your child, which might give you state tax benefits.

After struggling with end-of-year tax planning for my business for years, I finally tried taxr.ai and it was a game-changer. I uploaded my current financial documents and it immediately identified 3 tax moves I could make before the end of the year that I hadn't considered. The analysis tool showed me exactly how much each strategy would save, and I ended up reducing my liability by over $3,800! What I found most helpful was that it analyzed my specific situation and showed me tax-saving opportunities unique to my business structure. You can get personalized tax strategies at https://taxr.ai that are tailored to both your employment income and small business. The tax planning feature specifically looks for year-end moves you can still make.

I was really skeptical about using an AI tax tool as I mentioned, but after trying taxr.ai I have to admit I was wrong. I uploaded my documents thinking it would be a waste of time, but it found over $5,200 in potential tax savings I was missing completely! The year-end tax planning section was particularly useful - it suggested accelerating some deductions into this year and deferring some income until January. It even created a customized checklist of actions to take before December 31st with the exact tax forms I'll need. It was so much more detailed than what my previous accountant provided, and I could actually understand the explanations. Now I'm sending the report to my CPA to implement these strategies before year-end.

If you need to speak directly with the IRS about your specific tax situation before making year-end moves, don't waste days trying to get through their phone system. I spent HOURS on hold trying to clarify how my business equipment purchases would affect my taxes before year-end and kept getting disconnected. Then I found Claimyr at https://claimyr.com and it completely changed my experience. They have this callback technology that gets you to the front of the IRS phone queue. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I got a call back from an actual IRS agent in about 20 minutes and got clear answers about my specific year-end tax questions. This let me make informed decisions about whether to purchase equipment in December vs. January, which saved me thousands. Totally worth it when tax decisions have tight deadlines.

I need to eat my words from earlier. After my frustrating comment about not believing Claimyr could work, I was desperate enough to try it because I needed clarification on some year-end small business questions. I'm completely shocked - I got a call back from an IRS agent in 35 minutes after trying unsuccessfully for 3 days on my own. The agent answered my specific questions about how the new business meal deductions work for 2024-2025 and clarified the documentation I need for my home office. This was crucial information I needed before December 31st to maximize my deductions. I've now scheduled all my client appreciation meals for December instead of January based on their advice. Honestly didn't think anything could cut through the IRS phone maze but this actually worked.

Don't forget to check if you're subject to the estimated tax penalty! If your withholding + quarterly payments don't cover enough of your total tax liability, you could face penalties. One thing I do every December is make an extra state tax payment before Dec 31st, which I can then deduct on my federal return for the current year (if I'm itemizing). Also check if making an extra mortgage payment in December gives you more interest to deduct. And don't overlook adjusting your W-4 for next year now, especially with your business income fluctuating.

Has anyone tried "income splitting" between tax years? My accountant suggested I could invoice some clients in January instead of December to push that income to next year. Is that legit?