10 Smart Tax Moves to Cut Your 2025 Tax Bill Before Year-End

Before the year closes, strategic tax planning could mean thousands in savings. Here’s how to make the most of the last two months of 2025 under the new One Big Beautiful Bill Act (OBBBA)  and what every U.S. taxpayer should know.

Why Year-End Tax Planning Matters in 2025

The last two months of the year are often filled with holiday plans, gift shopping, and end-of-year deadlines but they’re also the most critical time to plan your taxes.

With new changes introduced under the One Big Beautiful Bill Act (OBBBA), proactive year-end tax planning can mean the difference between a costly surprise and a well-earned refund.

Whether you’re an individual taxpayer or small business owner, understanding how the new legislation impacts deductions, charitable giving, and savings opportunities is key. At Resoly, we help taxpayers navigate these updates to uncover hidden opportunities for tax relief and smarter financial decisions.

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Here are the 10 best strategies to reduce your 2025 tax bill before December 31.

1. Reevaluate Your Deductions Under the New Law

The OBBBA has reshaped how U.S. taxpayers approach deductions.

• The SALT (State and Local Tax) deduction has increased to $40,000 (from $10,000) through 2029.
• The standard deduction has also risen to $31,500 for married couples and $15,750 for individuals.
• And for seniors aged 65 and up, there’s an additional $6,000–$12,000 deduction.

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If you’re unsure whether to itemize or take the standard deduction, now’s the time to calculate both. Depending on your income and expenses, one approach could significantly reduce your taxable income. 👉 Pro Tip: Consult a Resoly tax advisor to compare both options before filing.

2. Maximize Retirement Contributions

Contributing to your 401(k), IRA, or other retirement accounts doesn’t just build your future it can also lower your taxable income.

For 2025:

• The 401(k) contribution limit is $23,500, or $31,000 with catch-up contributions if you’re 50+.
• The IRA contribution limit is $7,000 (or $8,000 if 50+).

Each dollar you contribute pre-tax reduces your adjusted gross income (AGI), potentially helping you qualify for additional deductions under OBBBA.Tip: If your investments are temporarily down, consider converting a traditional IRA to a Roth IRA, you’ll pay taxes now at a potentially lower rate and enjoy tax-free withdrawals later.

3. Offset Gains with Losses

If your investments performed unevenly this year, consider tax-loss harvesting, selling underperforming assets to offset capital gains elsewhere. For example:
If you earned $5,000 in gains but realized $3,000 in losses, you’ll only be taxed on the net $2,000.

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This simple yet effective strategy can reduce your overall tax burden, but remember the wash sale rule: don’t repurchase the same or a “substantially similar” asset within 30 days, or you’ll lose the deduction. Resoly Insight: Strategic portfolio reviews can help identify these opportunities before December 31.

4. Take Advantage of the Higher Gift and Estate Tax Exemption

Before OBBBA, many taxpayers were rushing to make estate transfers before the exemption limit dropped. Fortunately, that cap has now been made permanent and raised to $15 million per individual or $30 million per couple starting in 2026. That means 2025 is an excellent time to revisit your estate plan and gift strategy.

• Consider gifting appreciated assets while market values are moderate.
• Explore trust options to protect assets and minimize future estate taxes.

Your Resoly advisor can help align your estate plan with these new federal thresholds.

5. Bundle Charitable Donations

Philanthropy remains one of the most rewarding ways to lower your tax bill. If you plan to make significant donations, consider bunching multiple years’ gifts into 2025 by contributing to a Donor-Advised Fund (DAF). You’ll get an immediate deduction this year, while retaining flexibility to disburse donations over time.

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Starting in 2026, itemizers will need to contribute at least 0.5% of their adjusted gross income before claiming charitable deductions so acting before the new threshold kicks in could mean a bigger tax break.

6. Use Health and Education Accounts Strategically

If you have a Health Savings Account (HSA) or Flexible Spending Account (FSA), don’t forget to use your remaining balances before they expire.

• FSAs typically have a “use it or lose it” rule, though some employers now allow up to $660 to roll over.
• HSAs, on the other hand, roll over indefinitely making them one of the best tools for tax-free healthcare savings.

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For parents and grandparents, 529 education plans are another excellent move. Contributions grow tax-free, and you can front-load five years’ worth of gifts without triggering federal gift tax.

7. Explore Tax-Free Investments

Municipal bonds and other tax-exempt securities can be excellent additions to your portfolio especially if you’re in a higher tax bracket. Earnings from these investments are typically exempt from federal income taxes, and in some cases, state taxes as well.

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However, keep in mind the Net Investment Income Tax (NIIT): a 3.8% tax may apply if your Modified Adjusted Gross Income (MAGI) exceeds $200,000 (single) or $250,000 (married). Discuss with your Resoly tax specialist whether tax-aware investing could reduce your 2025 liability.

8. Optimize Your Charitable and Family Contributions

Beyond standard gifting, the new “Trump Accounts” introduced under OBBBA allow parents and relatives to open retirement-style accounts for minors, even without earned income.

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Each account can receive up to $5,000 annually, with a $1,000 government “seed” contribution for accounts opened between 2025 and 2028. It’s a rare opportunity to start building generational wealth — and it may come with long-term tax benefits.

9. Review Your Withholdings and Estimated Payments

If your income or filing status changed in 2025, your tax withholdings may no longer be accurate.Use the IRS’s withholding estimator to check your current status. Adjustments made now can prevent underpayment penalties or help you avoid giving the IRS an interest-free loan.

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Many Resoly clients discover that recalibrating withholdings before year-end helps free up cash flow and minimize surprises at filing time.

10. Stay Informed and Work with a Tax Professional

2025 has brought more tax law changes than any year in recent memory. Between the OBBBA updates, increased deductions, and shifting retirement limits, professional guidance is essential.

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Working with a trusted tax relief provider like Resoly ensures you stay compliant, minimize your tax burden, and take full advantage of new opportunities.

Conclusion: Small Steps, Big Savings

Tax season doesn’t have to be stressful and with the right planning, it can even be rewarding.By reviewing your deductions, funding your retirement, making charitable gifts, and maximizing new opportunities introduced by the OBBBA, you can finish the year stronger  and keep more of what you earn.

At Resoly, our mission is to simplify complex tax laws and help taxpayers achieve peace of mind through clear, strategic guidance. Whether you’re navigating new legislation or planning for 2026, we’re here to make your tax journey smarter, simpler, and stress-free.