With Congress back in session, major tax changes may be on the horizon. One of the biggest shifts could be the expiration (or “sunset”) of the Tax Cuts and Jobs Act (TCJA) at the end of 2025. This means tax rates may go up—affecting how individuals and businesses plan their finances.
Now is the time to take action. With the right moves, you can reduce your tax bill and keep more of your hard-earned money.
Here are 10 key tips from the team at LyntaxGroup to help you plan ahead and stay tax-smart:
✅ 1. Be Strategic With Your Income
If tax rates are going up, it may be smart to take more income this year while rates are still low.
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If you’re self-employed, try to get paid in 2025 instead of waiting.
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Employees with stock options or bonuses should plan the timing carefully.
Tip: Think about converting some of your traditional IRA into a Roth IRA now. You’ll pay lower taxes today and enjoy tax-free withdrawals later.
✅ 2. Delay Large Expenses
Planning to make big donations or business purchases? It might be better to wait until next year when tax rates are higher and the deductions could save you more.
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Delay charitable donations if it makes sense.
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Postpone business costs if you’re a small business owner.
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Consider timing state/local tax payments for maximum deductions.
✅ 3. Donate Stock Instead of Cash
If you own stock that’s increased in value, donating it to charity could give you a bigger tax break:
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You get a deduction for the full value of the stock.
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You avoid paying capital gains taxes on the increase.
✅ 4. Combine Charitable Donations
Planning to donate regularly? Consider “bunching”—combine two years’ worth of donations into one. This can help you exceed the standard deduction and get a bigger tax benefit.
✅ 5. Max Out Retirement Contributions
Save for the future and cut your tax bill:
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In 2025, you can contribute more to 401(k)s and IRAs.
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If you’re 50+, take advantage of catch-up contributions.
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If you’re aged 60–63, even higher catch-up limits may apply!
✅ 6. Use Carryforwards
Look at your previous tax returns for unused deductions you can still apply:
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Capital losses
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Foreign tax credits
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Business losses
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Investment expenses
These can save you a lot—talk to your tax advisor to make sure you’re using them.
✅ 7. Avoid IRS Penalties
Double-check your estimated tax payments and paycheck withholdings. The IRS charges 7% interest for underpayments—and that could go higher.
✅ 8. Gift High-Growth Assets
If you want to reduce estate taxes later, consider gifting investments or putting them in a trust now.
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This removes future growth from your taxable estate.
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You can also use discounts (like marketability or minority interest) to lower the value for tax purposes.
Bonus Tip: Don’t forget the annual gift exclusion—you can give up to $19,000 per person in 2025 tax-free.
✅ 9. Review Your Investments
Take a fresh look at your investment accounts to see if there are losses you can harvest. This means selling losing investments to offset gains and reduce taxes.
⚠️ Just watch out for the wash-sale rule—you can’t buy the same stock back within 30 days or you lose the deduction.
✅ 10. Get Personal Advice
Every person’s tax situation is different. Don’t guess—talk with a trusted advisor at LyntaxGroup to build a plan tailored to your income, business, and long-term goals.
📅 What’s Next?
2025 could bring major changes in tax law. With smart planning, you can stay ahead of the curve.
📞 Contact LyntaxGroup today to get a personalized tax strategy built for you.
Your future self will thank you.