Tax Planning Opportunities After Year-End

Many taxpayers believe tax planning ends on December 31, but that isn’t entirely true. While some strategies must be completed before year-end, several important tax-planning opportunities remain available after the taxable year closes, often up to the filing deadline.

1. Retirement Account Contributions

You can still make prior-year contributions to Traditional and Roth IRAs, SEP IRAs, and Solo 401(k)s (employee portion) until the tax filing deadline. Deductible contributions may reduce taxable income for the prior year.

2. Health Savings Account (HSA) Contributions

If you were HSA-eligible, you can fund your HSA after year-end and before filing. HSAs offer a rare triple tax benefit: deductible contributions, tax-free growth, and tax-free qualified withdrawals.

3. Review Deductions and Credits

Post–year-end is the time to ensure all eligible deductions and credits are captured, including charitable contributions, medical expenses, education credits, and dependent-related benefits.

4. Filing Status and Dependents

Life changes such as marriage, divorce, or changes in dependents can significantly affect your tax outcome. Reviewing filing status and dependent eligibility can lead to meaningful tax savings.

5. Use Loss Carryforwards Strategically

While investment losses must be realized before year-end, planning how to apply capital loss carryforwards and other tax attributes happens after year-end and can reduce current and future taxes.

Final Thoughts

Tax planning doesn’t end on December 31. Taking advantage of post–year-end strategies can reduce taxes, improve accuracy, and support long-term financial goals.