Expiry of tax in 2025
Wow, 2025 is probably more. We have only 2 weeks left to complete the tax action. Actually, we have less time than that. I want to get everything done before the holidays. Wife RB40 is already in California, and we will be flying over to join her for Christmas. Who wants to deal with taxes during the holidays? Not Me!
These days, year-end tax preparation is simple. There are only a few ways to increase employee taxes. Here are the main points.
Maximize Retirement Contributions
An easy way to reduce your tax liability is to contribute to your retirement plans for tax benefits. Mrs. Rb440 and I made our first Roth IRA contributions in 2025, $8,000 each. That was a good decision because the stock market did well this year. He also deposited his 401k contributions before he retired. That’s $34,750 for people over 50. I haven’t factored in the solo 401k yet because I don’t know how much I’ll be getting this year. I probably make about $10,000 and should be able to contribute more of this to a solo 401k. Fortunately, the last day to contribute to a solo 401k is the tax deadline. I have a few months left to get it done.
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Harvesting Financial Losses
Investors can sell their money losing stock investments and deduct $3,000 a year against their regular income. This is easy for me because I can’t get lost! I have individual stocks in my tax account, but I have held most of them for many years. They are all money. It feels good not to be lost. I’m perfectly fine with giving up these tax cuts.
Over the next year, I will work on selling some stocks to take profits while staying at 0% long term capital gains. If you’re married, you don’t have to pay tax on long-term benefits if your agi is less than $96,700. I am looking to sell some shares.
Licensing
Another way to reduce your tax liability is to make other charitable contributions.
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We have made a few more donations, but I don’t think it will be enough to overcome the general cuts. Charitable Debt contributions only help if you itemize your tax deductions. However, it looks like there will be some tax legislation in 2026. Taxpayers who take the standard deduction can claim additional deductions of up to $1,000 (single) or $2,000 combined). That’s interesting. We have to look at that next year.
Okay, that’s all I have for today. Turns out I don’t have much to do. We have already done our traveling for a year. That’s the best way to do it. It’s no fun getting ripped off during the holidays.
Have you finished using the annual tax? Are there any new moves I can make to reduce taxes?
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