Last-Minute Tax Planning Opportunities (and What to Do Differently Next Year)
As tax season approaches, many investors assume there is little they can do to reduce their tax bill.
While most major strategies should be implemented throughout the year, there are still several last-minute tax planning opportunities that can help improve your current tax situation—and set you up for better outcomes in the future.
According to Internal Revenue Service, taxpayers often overlook deductions, contribution limits, and timing strategies that could impact their tax liability.
The key is understanding which strategies are still available—and how to plan ahead for next year.
Review Retirement Contributions
One of the most common tax-saving opportunities involves retirement account contributions.
Contributions to certain accounts may reduce taxable income, depending on eligibility and income limits.
Examples include:
- Traditional IRA contributions
- SEP IRA contributions for business owners
- Health Savings Account (HSA) contributions
Even if the deadline is approaching, reviewing these options can provide immediate tax benefits.
Consider Tax-Loss Harvesting Opportunities
Market volatility sometimes creates opportunities to offset gains with losses.
Tax-loss harvesting involves selling investments that have declined in value to offset gains realized elsewhere in your portfolio.
According to research from Vanguard*, tax-loss harvesting can potentially add incremental value to portfolios over time when implemented consistently.
However, investors should be mindful of the wash-sale rule, which prevents claiming losses if substantially identical investments are repurchased within 30 days.
Review Capital Gains Before Filing
Tax season is also an opportunity to review investment transactions from the previous year.
If capital gains were realized, investors should evaluate:
- Whether gains were short-term or long-term
- Whether losses could offset gains
- Whether portfolio turnover is creating unnecessary tax exposure
For a deeper look at how investment sales impact taxes, read our guide on capital gains planning:
“Capital Gains Planning: When to Sell and When to Hold.”
Plan Now for Next Year’s Tax Strategy
While tax filing focuses on the past, effective tax planning focuses on the future.
Many investors use tax season as an opportunity to:
- Evaluate portfolio turnover
- Review charitable giving strategies
- Adjust tax-efficient investment positioning
If you want to understand how these strategies fit into a larger tax-efficient financial plan, explore our full guide:
“The Smart Investor’s Guide to Tax-Efficient Wealth Management.”
Start the conversation
Tax season doesn’t just reveal what you owe—it can reveal opportunities to improve your financial strategy.
At Landmark Financial, we help clients integrate tax awareness into their broader investment and financial planning decisions.
If you’d like to review whether your current strategy is optimized for taxes, schedule a conversation with our team today.
* The Russell 1000 Index is a U.S. stock market index that tracks the largest 1,000 stocks in the Russell 3000 Index, which represent about 93% of the total market capitalization of that index. The index is market cap weighted, meaning larger companies have a greater influence on the index than smaller companies.
The Russell 3000® Index measures the performance of the largest 3,000 US companies designed to represent approximately 98% of the investable US equity market. The Russell 3000 Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad market and is completely reconstituted annually to ensure new and growing equities are included.
Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.
All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. All information is believed to be from reliable sources. However, we make no representation as to its completeness or accuracy.